FedEx

ABOUT FedEx .... World's largest express transportation

company.

CEO - Fredrick Smith

Annual Revenue - $37.953 billion

Income - $1.125 billion

Covers more than 220 countries and territories

More than 280,000 employees

Competitors - DHL, TNT, EMS, UPS

SYNOPSIS Ms Sylvia Cooper was to deliver a lecture to

30 senior managers at Florida at 2.00 pm

She expected important material for the presentation from FedEx at 10.00 am

The parcel got mis-sorted and was lying at Savannah, Georgia (3hrs from Florida)

Money-Back Guarantees

If FedEx fail to deliver package by 10:30 am they give the money back to the customer.

If FedEx is not able to locate the exact location of any package within 30 minutes of the request then the customer gets back the money.

CORE

Delivery of Packages

GENERIC

EXPECTED

AUGMENTED

POTENTIAL

Safe Delivery

Timely Delivery

Guarantees

Sophisticated Tracking System

Q1. What should Federal Express do for this customer?

Federal Express should treat it’s every client in the same manner

Single service failure leads to negative word-of-mouth publicity; harmful in long term

FedEx should deliver this package without further delay via any transport available

Letter of Apology

Compensation

Refund

The Market Research Process

The Market Research - FedExExploratory Research Exploratory Research is the design used to generate many

ideas & to determine many ways for the problem solution. Exploratory Research is a type of research conducted for a

problem that has not been clearly defined. Through the Research, FedEx required to know how to

tackle errors in delivery such as delay in delivery & mis-sorting of packages.

Also the research is required to decide on the policies that FedEx should implement to compensate the customers & maintain the delight of the customer.

Q2. What should be Federal Express’s general policy be for similar service mishaps?

Guidelines to Customer service executives Tie-ups with the Airlines, Local Transportation &

Local Logistics Provider Yearly analysis of the amount spent on service

failures Incentives for Correction of Error Continuously updating the customer Separate department for Mis-sorted Parcels Compensation to the Customer

Q3. What do you think actually happened ?

Federal Express actually sent the parcel before 2.00pm

Federal Express had refunded the money back to Ms Sylvia for late delivery

Q4. Federal Express handles roughly 875,000 packages each day.

What would you guess its error rate to be?

They aim at avoiding errors.

Error Rate – 0.0005%

4 – 5 Packages are mis-sorted

THANKYOU