Hence, the company must immediately respond to these issues in order to ensure long terms sustainability. Logistics computerization is one of the most recommendable policies for the FedEx to improve its logistics and customer service operations. The company has to raise additional finance. It also has to recruit more skilled employees to implement the planned changes. Finally, the FedEx should develop potentials systems to monitor the performance efficacy of the implemented changes. Background Federal Express or FedEx is a North American shipping company notable for its ‘fast response to customer requests and constant tracking of every shipment’ (McDougall & Dorken, 1998). The company (as cited in McDougall & Dorken, 1998), employs nearly 137,000 people worldwide (including 3,500 in Canada) and offers shipping services to 212 countries. and every night, FedEx planes carry approximately 2.9 million packages weighing a total of nearly 2 million pounds. The FedEx maintains 60 shipping facilities in Canada to meet Canadian shipping needs from coast to coast. The organization gives primary focus on Quality Management and Assurance and attained ISO 9000 for its operations worldwide. FedEx is the first service based company that has won the Malcolm Baldrige National Quality Award in the US. The company has a good reputation in the shipping sector and maintains a huge potential customer base. Statement of Issues While analyzing the case scenario, it is clear that the FedEx has some potential issues with its logistics management and customer service practices. McDougall & Dorken (1998) clearly indicate that the company failed to meet shipping requirements of Desktop Innovators and the situation caused the DI to suffer from huge business loss. The DI placed a shipping order on FedEx to send two boxes from Kitchener, Ontario to Simpsonville, South Carolina. The DI wanted to get those two boxes at the destination by 12th October so that the firm’s dealer would get plenty of time to transfer them on to Charlotte, where the trade show had been arranged. However, only one of those boxes was delivered at Simpsonville on time and therefore the DI could not display its software packages at the trade show stalls. Similarly, the FedEx did not timely and properly respond to queries raised by the DI’s Office Manager Anita Kilgour. Hence, Kilgour could not get actual status of the DI’s goods in transit and this situation caused great confusion to both Kilgour and the dealer. While scrutinizing the FedEx’s service delivery policies, it is obvious that the company violated its delivery terms and conditions, which the client had been had been promised at the time of order placement. Situation Analysis The identified issues relating to the two management areas (logistics management and customer service management) raise many potential threats to the FedEx’s long term sustainability. Effective logistics management is crucial to customer satisfaction since customers are the end users of a firm’s all logistics activities. It is obvious that every shipment is intended for a particular purpose and therefore it will be of no use if the shipped goods are delivered late. In other words, the FedEx’s weakness in logistics management would lead to huge troubles in future since the company handles millions of packages every day.
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