Question

Case 1: Use of Technology

Federal Express (FedEx) was founded about 50 years ago. It handles on an average of 3 million package-tracking requests on a daily basis. To remain ahead of its competitors, FedEx strives on customer service by keeping a comprehensive website, FedEx.com. It increases customer service and reduces costs. For example, each request for information which can be retrieved from the website rather than by the call centre help FedEx to save an estimated $1.87. The costs for FedEx have been reduced from more than $1.36 billion per year to $21.6 million per year by customers using the website instead of the call centre calculating each package-tracking request costs Federal Express 3 cents.

Another know-how that improved its customer service is Ship Manager, an application installed on customers’ sites so users can determine shipping charges, weigh packages, and print shipping labels. Customers can also tie their invoices, billing, accounting and inventory systems to the application, Ship Manager.

Nevertheless, Federal Express still spend almost $326 million annually on its call centre to reduce customers’ annoyance when the website is down or when customers have difficulty using it. It uses CRM software called Clarify in its call centres to ensure customer service representatives’ job easier and to speed up response time.

Answer the following questions:

a) What is the importance of technology to ensure high-quality customer service?

b) Can you estimate Federal Express’ annual savings from using information technology?

c) Can you give a few examples of information technologies used by Federal Express?

d) What is the role of the application ‘Ship Manager’?

e) Your overall observations and learning from the above case study.

Answer 1

Solution-a ) Fedex has developed a wesbite for their customers to provide ease access to customer for any accessing information related to their shipments which doesn't require the hectic process of calling the customer care and long wait time.

Solution-b ) Company successfully able to cut down 1.87$ for each information that is accessed by a customer. In total, for a year, company able to cut down cost from  $1.36 billion to $21.6 million using online technology.

Solution-c ) Company has built CRM software so that call centre employees could easily able to solve the query of the customer. The next technology they built is fedex.com, website that can be used for information fetching purpose built for the convenience of their customers which also helps them cut down operating cost massively. The company also built ship manager software for managing all data related to shipment of each stuff.

Solution-d ) Ship manager is an installable application built by the fedex so that customers can determine the shipping charges, possibly weigh packages, as well as print shipping labels. Application features also include to tie invoices, add billing, execute accounting and handles inventory system.

Solution-e ) This case study is important study as it shows how the technology can be used by any organization to make significant changes in the company, from cutting cost to providing convenience to customers along with scaling the business more and more.