EBizTeam2_FedEx_Draft 2

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MAN 6785 – E Business Strategy Strategic Project Assignment:

MAN 6785 – E Business Strategy Strategic Project Assignment FedEx Order Delivery Analysis Christie Bedford Robert Evans Bryan Thompson

FedEx: Company Overview:

FedEx: Company Overview Global courier delivery services company Founded in 1971 by Frederick W. Smith Over $42 billion in revenue and 300,000 plus employees Widely known for competitive shipping rates and traceability of packages.

FedEx: Order Delivery Process Focus:

FedEx: Order Delivery Process Focus The order delivery process served as the focus for our study. Current shipping process is to estimate the delivery date based on the service purchased instead of the actual time is takes to deliver. Traceability allows customers to track packages sitting idle awaiting to be delivered on the estimated delivery date . Add value to their higher priced products by delaying the delivery of their lower priced products Causes dissonance with their customers and possible log jam of packages at a particular site

FedEx: Current Business Process – Order Delivery:

FedEx: Current Business Process – Order Delivery Shipping customer gives the shipment to the shipper Shipment is then received by customer support and an estimated shipment delivery date is determined based on the option selected and purchased by the shipping customer Shipping database is updated FedEx tracking website Chosen delivery date is obtained. If the package has arrived prior to the purchased delivery date the package will remain at the nearest FedEx store . The package will be delivered to the final destination on the delivery date and the shipping customer is notified of the delivery and the shipping process ends.

FedEx: Current Business Process – Order Delivery:

FedEx: Current Business Process – Order Delivery What is the customer issue that the new and improved process is trying to address? “Why does my shipment sit idle at its destination? And why can’t it be delivered when it gets to its location ?” What is the key process that is being improved in the BPM? Shipment estimation errors Idle packages at destination until faulty estimated delivery date is reached Customers can see packages sitting idle for days awaiting delivery

FedEx: Current Business Process –Process Flow:

FedEx: Current Business Process –Process Flow

FedEx: Improved Process – Order Delivery:

FedEx: Improved Process – Order Delivery Addresses the customer’s concerns and creates a more efficient shipment delivery process . Shipping customer gives the shipment to the shipper Eliminate the delivery service options. Instead the delivery date will be estimated based on distance and historical data. Shipment will then be received by customer support and the package will be shipped to the destination Shipping database is updated Make package updates more readily available to the customers via text. Packages will no longer sit idle and be delivered to destination upon arrival. Receiving customer will also have the option to travel to the FedEx store and pick up the package themselves, which is not currently allowed. Once the package has been delivered to the final destination or picked up by the receiving customer, the shipping customer will be notified

FedEx: Improved Process – Order Delivery:

FedEx: Improved Process – Order Delivery What other improvements could be made to the process? Rebate fees back to the customer for late delivery Partner with large shippers to share customer information for our CRM systems Allow the customer to pick the delivery date. This will require creating date range logic and intelligence in comparing estimated delivery dates with requests . What are the key performance indicators? The primary KPI will be increased customer satisfaction. This will be obtained through experience feedback surveys and percentage of repeat business. By allowing customers to see their packages constantly moving until the point of delivery will insure positive feedback. Another KPI will be improved Cycle Time ( ie : process time will be shorter) and better transportation cost estimation. 

FedEx: Improved Process – Process Flow:

FedEx: Improved Process – Process Flow

Improved Process Website Suggestions:

Improved Process Website Suggestions http://cbedfordunf.wix.com/fedex

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