FedEx Corporation, originally known as FDX Corporation is a logistics services company who pioneered the modern air/ground express industry in 1971. The founder of FedEx is Frederick W. Smith and FedEx Corporation is based in the United Stated with headquarters in Memphis, Tennessee. The name "FedEx" is a short form of the name of the company's original air division, Federal Express, which was used from year 1973 until year 2000.
Under the respected FedEx brand name, FedEx Corporation is offering integrated business applications through operating companies competing collectively and managed collaboratively. There are FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks, FedEx Supply Chain and FedEx Services. With more than 290,000 employees, FedEx Corporation currently serves the worldwide countries which include in the Asia Pacific, Europe, Middle East, Latin America and North America.
FedEx Corporation's mission is to produce the superior financial returns for shareholders by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Then FedEx Corporation has made a promise that customer requirements will be met in the maximum quality manner appropriate to each market segment served. Besides, FedEx Corporation will attempt to develop mutually rewarding relationships with its employees, partners and suppliers.
FedEx and its business environment
Technological environment
Technology plays a very important role in delivery of the FedEx service. FedEx Corporation is setting the efficiency industry standard and customer service by using technology advanced and FedEx was do extremely well in anticipating and projecting demands of an environment that would depend and thrive on information.
FedEx Corporation was the first to integrate wireless technology more than two decade ago and continues to develop and lead the industries in developing innovative wireless solutions. FedEx Corporation has developed an information system's network that enables customers and support personal to have wireless access anytime and anywhere.
Then, FedEx Corporation implemented e-business application to improve the level of customer satisfaction as well as their overall transactions with the clients. The e-business system included a web or call centre service where the company can easily be informed of the status of the packages delivered.
Competitive environment
There are two main competitors for FedEx which are DHL and UPS.
UPS or United Parcel Service Inc. is the world's largest package delivery company which headquartered in Sandy Springs, Georgia, United States. UPS delivers more than 15 million packages a day to 6.1 million customers in more than 200 countries and territories around the world. UPS is well known for its brown trucks, internally known as package cars and UPS also operates its own airline based in Louisville, Kentucky where its World port air hub is also located.
DHL Express is a division of Deutsche Post DHL providing international express mail services which originally founded in 1969 and expanded its service throughout the world by the late 1970s. DHL expanded its services to countries that could not be served by any other delivery service, including the Eastern Bloc, Vietnam and the People's Republic of China.
Cultural environment
FedEx Corporation is more emphasized on a people-first philosophy, where respect for all people is a fundamental value and everyday business practice within the company. FedEx Corporation strives to create an environment where people can contribute and grow, and where the values of diversity are woven through the organization.
Chapter 9: The Hybrid Interface
There are two types of hybrid interface which are people-led hybrid interface and machine-led hybrid interface.
People-led hybrid interface
People-led hybrid interface defined as an interface where interaction between human being and machine occurs in which people operate in the foreground and are supported by the machine. The interaction between human being with a machine can enhance the effectiveness or increase and productivity in the daily operation. The peoples who operates in the foreground and are supported by the machine needs to have the knowledge to manage and evaluate the state of the machine.
For example, when FedEx driver driving an automobile to deliver goods and services to their customers. The people led interface incur when the FedEx driver uses the steering wheel to control the direction of the vehicle and the accelerator pedal, brake pedal as well as gearstick to control the speed of the automobile. Hence, the interaction between the FedEx driver and the automobile caused the FedEx driver able to accomplish the task of driving, maintaining the automobile and deliver goods and services to the customers.
FedEx provide and deliver on time services to their customer in order to maintain the long term profitable relationship and develop the customer loyalty towards its company. Hence, FedEx has developed the innovation of the technology to support their daily operation. FedEx set up COSMO (Customer Operations Service Master On-line System) to monitor each stage of their delivery cycle. COSMO is a computerized packaged tracking system that allows the FedEx employees to key in the information needed by several ways. For example, FedEx customer service representatives key in the necessary information into COSMO by computer terminals, this mean that FedEx has apply the people-led hybrid interface where the customer service representative (human being) is enable by the COSMO (machine).
Besides, FedEx always giving supports and encourage their employees in order to allow them to be more innovative in the working environment and more confident in decision making process by providing quality results. FedEx is providing their employees to use the high technology hand-held tracker and the digitally assistant dispatch system (DADS). The hand-held tracker is used to records the information throughout the day and allow the couriers to scan the bar code on every waybill at each stage of delivery process. It helps to retain and transmit the information of the package such types of service required, destination and routing instruction as well as provide guidance to the couriers by a series of performance measurement.
While, DADS is a small digitally assisted dispatch computer system that found in all couriers van to enable the couriers to administer their time and routes with high efficiency. For example, when the couriers return to the van, the information acquire is then downloaded from the hand-held trackers to the DADS in order to update the package location in the COSMO system. By using this type of people-led hybrid interface, it provides the customers a convenient ways to find out the time and location of their package. Hence, FedEx able to maintain positive control over its shipments and enhance their customer satisfaction by constant tracking with the interaction of the human and machine.
Furthermore, FedEx develop its innovation technology by setting up the Command and Control system in their operation. Command and Control is the satellite to ground-level operation system which based at the Memphis SuperHub (FedEx website). FedEx used this system to act as a weather management tool and to check the traffic information in order to enable the FedEx Company deliver the package in any weather condition with the fastest and safest manner. For example, FedEx connect to over 750 customer service workstations, over 500 aircraft and traffic hubs around the world to ensure the coordination of inbound and outbound aircraft and thousands of delivery vehicles are in smooth condition and enable their employees to deliver the package on time to their customer to achieve customer satisfaction.
Each types of hybrid interface used by FedEx Company have the benefits that improve the company's daily operation. People-led interface helps the front line employees of the FedEx to increase their work productivity.
Machine-led hybrid interface
Many business organizations have deployed the use of machine-led interface in their daily operation nowadays. Machine-led hybrid interface is defined as the interaction between the machine and human, where machines operate in the foreground and are supported by people. It requires an output to ensure that the machine will always keep the user up to date in the progression of commands or execute commands in physical space.
FedEx has set up 45 call centers in global to handle over 500,000 telephone calls from their customers around the world per day. FedEx's call centre is a machine led hybrid interfaces that enable the machine (telephone) to be supported by the people (call centre representatives). It used for the purpose of receiving and transmitting a large volume of requests by telephone and is operate by the company to administer incoming product support or information inquiries from consumers. By setting up the call center, it allow the customers who prefer more "personal touch" than using high technology device and customers who need more in depth explanation and information about the shipping process to call and speak with the call centre representative regarding their problems.
FedEx has develop its operation through online by create the company website to full fill the customer's needs and wants. Through the company's web page, FedEx has developed an e-shopping tool, a web-based shipping application which enables their customers to check the shipment status. The comprehensive set of the FedEx web services is to facilitate and integrate dynamic shipping capabilities of their customer in a more convenient way. This web service allows the customers to ship, track the status, validate their address and access the real time data with a more powerful and user friendly experience.
Moreover, FedEx is expanded its machine-led hybrid interface by introduce the FedEx's live chat which is embedding in the website. So, if customers need any further assistance, they can use the "Chat with FedEx" function by fill in their personal details to start the chat session.
Hence, with the interaction between FedEx's web services and live chat (machine) with the supported of the employees (human being), it helps the FedEx to improve their business operation to be more efficient and easily to get into the involvement with their customer's internal process as well as enhance the customer's relationship.
The machine-led hybrid interface brings some benefits to FedEx such as cost saving and higher productivity. FedEx website, www.fedex.com allows the customers to track their shipment information or the status of the package based on the package number without calling to the service centre. Thus it helps FedEx's service centre to operate more efficient and able to handle more than 100,000 tracking enquiries daily. Furthermore, the capability of the FedEx's live chat was successfully helps the FedEx to saving up the investment cost of setting up more call centre.
The machine-led hybrid interface leverage the human talents by distributing their personalities or the emotional intelligent in scalable way. Human being is excelling in conveying empathy and handling the exception; hence with the support of the frontline machine, it helps to increase the employees' productivity by channeling their work more efficiently. For example, when the customers call to the service centre, the system will deliver the customer to the service provider via phone line. After that, the customer service representative will answer the call and handling the problem or enquiries from the customers and try to satisfy their needs and wants in a polite manner.
Chapter 10: Delivering the Integrated Customer Experience
Integration within Implementation Domains
There are three types' implementation domains: brand experience, interface and innovations. The brand experience it can help the organization build reputation and get awareness in connections with customers. It included company or brand name, logo, advertisement, and web design.
-Brand Experience
FedEx shows a global brand the fastest route to worldwide. In year 2009, FedEx has been honored as one of the "100 Best Companies to Work For" in the United States. FedEx also has been ranked in Fortune's magazine as Global Most Admired Companies . FedEx has its own Corporation logos; each of it has its own version of the wordmark used for identification and branding. The FedEx name is incorporated as a simple distinct text-only typographic treatment to create a clear, visually memorable identity. For FedEx logo, the "Fed" is in purple and the "Ex" is in a grey for the overall corporation use. While, for the original "FedEx" logo had the "Ex" in orange. The FedEx wordmark is actually a notable hidden right-pointing arrow between the "E" and the "X", which to emphasize the arrow shape. The concept of an arrow is to be promoted as a symbol for the speed and precision positioning, both FedEx communicative attributes.
Website has become a dominant technology. FedEx has its home page shipping resources source for everyone, so that customer could find out the information that the delivery services offer in their own region. FedEx website has created a quality website with full useful guidance and tools. In addition, a successful website should be able to lead the customers to take action. Such as, FedEx also allow the users to download FedEx Welcome Kit, so that it could help them optimize their shipping and manage account efficiently.
-Interface
Interface refers to the dynamic exchange of information in service that occurs between the company and the customers. Interactions with sales people face-to face, phone call, online chatting. FedEx main focus is on customer service, so they will always have interaction with customers. If customer encounter any problems and make complaints they can even get to the customer support centre, faces-to- face interactions with FedEx staffs. The front office will handle the customer procurement and complaints. While, if customer have questions or comments, they can email FedEx by select the appropriate service in order for a customer support representative to assist customer's inquiry.
-Innovations
Innovations are a change in the product or services for adding something new that added features and benefits. The changes must increase product value, customer value, or producer value. FedEx focus and improve built upon innovation and it continues to be an integral part of the FedEx culture and business strategy. The FedEx Innovation labs is an information technology project designed to create an atmosphere of collaborative thinking around critical technologies such as advanced optics for scanning, robotics, pervasive computing, biometrics, video object recognition etc. The Labs house a research and development team tasked with looking at future technologies that have a 3-5 years production roadmap.
Integration across Implementation Domains
Integration across implementation domains is more complex. It requires training program and expertise to create trustworthiness for customers. The Jobs at FedEx requires higher level of knowledge, experience, capabilities, and educated. FedEx need employs people with literature degrees, though FedEx might also need people holding with higher qualifications with MBAs. In addition, FedEx couriers receive roughly 50 hours of training per year. In order to maintain high quality service levels, training to be conducted by training professionals who understand the technicalities of the express transportation business. The courses from supply chain planning and logistics management to training on specific software programs, quality management and marketing sales.
Linkages between the interface & innovation
To create linkages between the interface and innovation, the company must provide "experiential encounters" that are referred as dynamic, interactive, and innovative. For example, FedEx created corporate sponsorship and events. FedEx is spent an estimated $44 million a year to sponsor the FedEx Cup, a full season of PGA Tour events culminating with a four-tournament playoff series to determine the top men's golfer, also Golf Digest reports. FedEx is trying to reach executives and other corporate decision makers. The PGA Tour has all the professional golfers from worldwide and its events are broadcast worldwide, and it's appealed to FedEx. It is because FedEx is a global company; they needed to communicate to customers on global stage. FedEx is recognized by executives and consumers, by sponsoring such huge amount of cost and long run event it make sense because it provides wide and extended exposure. So, this communications can provide new personalized experiential encounters between FedEx and the customers.
Integrated marketing
Integrated marketing is the process for managing customer relationships that drive brand value. In FedEx, within the marketing department activities are centered on customer segments. Each segment is staffed by a cross-functional team composed of manager, marketer, analyst, agency account executive, and may be a representative from the agency-managed fulfillment house. These cross-functional teams meet as frequently as necessary. E-mail has greatly facilitated this integration. All marketing vendors are connected to FedEx and to each other through the FedEx corporate e-mail system.
The marketing communication can provide information to prospective customers. It can let the customers know about the service options available, cost, specific features, functions, and service benefits. FedEx has own customer information services department. It offering a customer service toll-free telephone line for customer questions. It is operated by an automated operator then will prompt the user to a live agent for uses of tracking, claims, scheduling pick-ups, locations, ordering supplies, setting up FedEx accounts, billing etc. However, the customers can get information in FedEx website which is http://www.fedex.com/my/ .One of the roles of marketing communication is persuade target customers that service offers best solution to meet their needs and build relationship with them. The company added on a facility on the official website for consumers to be able to track their packages from the Internet. Marketing at FedEx has two IT work teams supporting its efforts. The teams are physically located within the marketing building and report to both the IT and marketing organizations. FedEx marketing mix strategy affected the retention rate prevailing within the industry.
Marketing communication can also help maintain relationships with existing customers. It requires comprehensive, up-to-date customer database and ability to make use of this in a personalized way. FedEx marketing database contains a complete picture of all the company's customers worldwide, and their FedEx transactions. So, they can turn customer data into customer knowledge, to satisfy the customers' needs.
e) Marketing communications mix
-Personal communications
FedEx become a well known company through word of mouth. What really has established a good repute for FedEx is the consistence in providing good quality services to its consumers. So, the customers will spread the positive words of FedEx to others. FedEx provides excellent customer care in this service-based industry, this enhance an emotional connection between FedEx and its customers.
-Advertising
Advertising is a form of communication intended to persuade an audience to purchase or take some action upon products, ideals, or services. FedEx has the TV commercial video ads. The advertising campaign launched to reflect on the new feature provided by FedEx also identified the expanded international capability of the company, appealing to a global audience to try FedEx services. One of the best known ad campaigns is "We Live to Deliver". This creates a huge impact for the company. One of the package deliveries giant's biggest web campaigns, which running on YouTube, is a series of 3 minute called "1-2-3 Succeed!" Grab the viewer's attention and driving web traffic toward FedEx.
-Publicity & public relations
Publicity is the deliberate attempt to manage the public's perception of a subject. FedEx is known for award-winning advertising and prestigious sport sponsorships. The reliability, speed, leadership, excellence and global reach that characterize FedEx are reflected in sponsorships and emphasized in FedEx advertising. The integrated marketing in sports events was used in order to reach audiences with diverse interests. This allowed customers to process orders and use FedEx as the default shipper.
-Instructional manuals
Instructional manuals consist of websites, voice mail, brochures and etc. FedEx website is a fruitful source for the potential customers to get information. Through FedEx website, the customers can search for FedEx shipping services. The websites also provides a variety of auxiliary services relating to their shipping and freight service.
-corporate design
FedEx has its own planes; it purchased its own fleet of planes to meet the scheduled delivery times. This is an evidence that the public relations were greatly and positively affected the move. Company vehicles with the Federal Express logo have become moving billboards. Whereas `Federal Express' only permitted 58-inch letters on the side of a trailer, the letters spelling FedEx can stand six feet tall. This can let the customers remember it vividly.
