FedEx in 2006: Continuing CRM Innovations

Group 9-Sandeep

Sarfaraz AnwarKhalilullah

Rahul SharmaRaju

About

• FedEx Corporation (FedEx) is the leader in the intensely competitive overnight package delivery business.

• Founder and CEO Fredrick Smith (Smith) depends on innovative customer relationship management (CRM) practices to gain a competitive advantage over FedEx’s rivals.

• He stresses that knowledge about cargo’s origin, present whereabouts, destination, estimated time of arrival, price, and cost of shipment are as important as its safe delivery.

• Original name – Federal expressChanged to - FedEx on January 1998

Objectives of the case:

• The case outlines FedEx’s CRM initiatives over the year, which helped the company save costs, grow and retain customers. It also highlights the importance of CRM in services industry

• The case discusses 6X6 Transformation and the new e-initiatives taken by FedEx to keep ahead of its rivals.

CRM at FedEx• FedEx was the first to launch overnight

delivery service.• Transport companies had a tie up with IT

companies so that it could provide information.

• Introduce “FedEx’s toll free line” for customer information about delivery status.

• It gather information though COSMOS.

• It introduced Power ship in year 1984 to improve the service.

• It established GOC (Global Operational Control Center) to track real time movement and positioning of trucks and flights and also provide weather condition and electronically displaying the data.

• It used CRM software which provided information of the customers.

• FedEx pioneered the “Hub and Spoke System”

E- CRM Initiative

• FedEx launched E-CRM project for wide information and move of Data.

• In 2001 it started with two certified CRM application , one was to make built and make customer profile and other was to customer service.

• The main objective of E-CRM was to solve the problem faced by customers.

Online tracking system

6X6 Transformation

The Six parts of FedEx initiative- 1. Satisfy the FedEx Customer.2. Work as a trust partner within the business.3. Create a great opportunity for every employee.4. Improve are ability to deliver.5. Unify though a consistent environment.6. Simplify information access.