Question

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

a) Now a days, Technology is become the most important part of our life. The whole world is already developed in context with the technologies. So, it also made an important place to empowering high quality customer services also. Yes, I am talking about FedEx, a well known express transportation company who realize the benefits of technology in the very beginning of its existence. And that’s why it became among one of the top most company. As early as 1978, just five years after it began operations, it pioneers the first automated customer service center.

FedEx understood the importance of technology and used it to ensure high-quality customer service. The days gone when customers could only reach a customer support centre on the phone between the hours of 8 a.m. and 5 p.m. Today, a customer should be able to contact a business whenever they need to, and through a variety of channels such as text message, email, social media platforms, and live chat on a company’s website.

        So, these are a few major areas, with the help of that the technology ensures high     quality customer service:-

· Websites. Using the website instead of the call centre calculating each package-tracking request costs Federal Express very less.

· E-mail. Using e-mail as a way to improve customer service and more quickly respond to certain needs or help requests.

· Communications. There is a unifying communications so that the customer who left a voice mail also sent an e-mail with the same request a few days ago.

· Software/ App: Ship Manager, an application installed on customers’ sites so users can determine shipping charges, weighs packages, and print shipping labels. Customers can also tie their invoices, billing, accounting and inventory systems to the application.

· Social media is changing the way to serve customers. Some of the customers solve their queries in social media also with numerous social media sites, including Face book, Twitter, MySpace and YouTube. Social media as a new way to reach consumers directly and quickly, and with almost zero costs.

· With the help of technology only it’s become possible to “Give Customers What They Want, When They Want It”.

· With the help of these technologies, customer can determine the status of their packages at all possible locations along the delivery route in real time. Customers can track packages in three ways:

1) via the FedEx Web site on the Internet,

2) by using FedEx Ship Manager at fedex.com, or

3) FedEx World ^TM Shipping Software.

b) The estimated federal Express annual saving from using information technology are :

$1.87 savings for information that is handled at the Web site rather than by the call center, $57.56 million per year saved by the company by customers using the Web site instead of the call center. Costs have been reduced from more than $1.36 billion per year to $21.6 million per year by customers using the Web site instead of the call center.

c) Few example of information technologies used by FedEx:

o COSMOS (Customer Operations Service Master On-line System) is a computerized package tracking system that monitors every phase of the delivery cycle at Federal Express.

o Comprehensive web portal (www.FedEx.com) to support customers and this helps in cost reduction.

o Fed-Ex made use of CRM tool (‘Clarify’) and this makes customer service representative’s work effortless and effective to respond customer with no lag. Fed-Ex 'QuickShip' allows accessing the shipping related information through emails.

o The company's couriers operate “Super Tracker^” hand-held computers, to record the transit of shipments through the FedEx integrated network.

d) Another application (‘Ship Manager’) is installed by Fed-Ex on their customer’s end so that the users can find out the shipping costs, printing of shipping labels; packages can be weighed, linking of invoicing, etc

e) So, overall the technologies is become the back-bone for not only FedEx but for other companies also. All of them are using these technologies with different aspects. Customer services, the most important part of any company are become more reliable and cost effective with the help of these upgraded and advanced technologies.