FedEx in 2006: Continuing
• FedEx Corporation (FedEx) is the leader in the
intensely competitive overnight package delivery
• Founder and CEO Fredrick Smith (Smith) depends
on innovative customer relationship management
(CRM) practices to gain a competitive advantage
over FedEx’s rivals.
• He stresses that knowledge about cargo’s origin,
present whereabouts, destination, estimated
time of arrival, price, and cost of shipment are as
important as its safe delivery.
• Original name – Federal express
Changed to - FedEx on January 1998
Objectives of the case:
• The case outlines FedEx’s CRM initiatives over
the year, which helped the company save
costs, grow and retain customers. It also
highlights the importance of CRM in services
• The case discusses 6X6 Transformation and
the new e-initiatives taken by FedEx to keep
ahead of its rivals.
CRM at FedEx
• FedEx was the first to launch overnight
• Transport companies had a tie up with IT
companies so that it could provide
• Introduce “FedEx’s toll free line” for customer
information about delivery status.
• It gather information though COSMOS.
• It introduced Power ship in year 1984 to
improve the service.
• It established GOC (Global Operational Control
Center) to track real time movement and
positioning of trucks and flights and also
provide weather condition and electronically
displaying the data.
• It used CRM software which provided
information of the customers.
E- CRM Initiative
• FedEx launched E-CRM project for wide
information and move of Data.
• In 2001 it started with two certified CRM
application , one was to make built and make
customer profile and other was to customer
• The main objective of E-CRM was to solve the
problem faced by customers.
The Six parts of FedEx initiative1. Satisfy the FedEx Customer.
2. Work as a trust partner within the business.
3. Create a great opportunity for every employee.
4. Improve are ability to deliver.
5. Unify though a consistent environment.
6. Simplify information access.