FedEx: Competitive Advantage through IT

<< Previous

Excerpts Contd...

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)...

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?”...

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