FedEx: Competitive Advantage through IT

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Case Details:

Case Code : BSTA063
Case Length : 18 Pages
Period : 1970 - 2003
Organization : FedEx, UPS
Pub Date : 2003
Teaching Note :Not Available
Countries : Global
Industry : Transportation Services

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

IT in Human Resources

FedEx had in place Interactive Video Instructions (IVI) that allowed employees to take advantage of slack periods to train themselves at any time of the day. The program was used for training and test preparation (Customer service employees at FedEx were tested twice a year on job knowledge)...

IT in Customer Service

FedEx also used IT to improve upon its customer service, by monitoring various aspects of a customer's transaction. The goal was to achieve “100% accuracy, quality, and customer satisfaction” on all transactions. One such system that FedEx used was the Service Quality index (SQI) that quantified every part of a transaction like “Was the package undamaged? Was the customer billed correctly?”...

FedEx Today

In 2003, FedEx operated one of the world's largest computer and telecommunications networks- more than 75,00015-networked computers and thousands of hand-held computers that recorded and tracked shipments. FedEx's data center processed more than 20 million information management system transactions daily, more than any other US company.

As of 2003, the company website hosted more than 6.3 million unique visitors per month and handled on average over 2.4 million package tracking requests daily. More than 2 million customers connected with the company electronically everyday, and electronic transactions accounted for almost two-thirds of the more than five million shipments FedEx delivered daily...


Exhibit I: FedEx: Business Segments
Exhibit II: FedEx: Segment Wise Performance
Exhibit III: FedEx: Record of IT Innovations


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