Fedex: Raising the bar on customer satisfaction

Unique business model

FedEx provides the widest range of transportation services, including express, ground, freight and expedited, linking customers to 214 countries in the global marketplace. The acquisition of the Kinko’s chain of business service stores will strengthen both retail access and its position in business services. FedEx is driven by a unique, three-part business model: operate independently, compete collectively and manage collaboratively. Each FedEx company has the flexibility to operate independently, focused on distinct customer needs in every market segment. But these independent companies also compete collectively worldwide under the trusted FedEx brand name. By managing collaboratively, FedEx takes full advantage of cross-company synergies.

Collaboration in action

In 2002, Capgemini was asked to help FedEx refocus on the total customer experience. Mike Glenn, executive vice president market development & corporate communications at FedEx, comments: “We needed a process that would leverage the brainpower of our top executive team, encouraging them to think differently, to experience real customer touch points and start effective problem solving.” The Capgemini Accelerated Solutions Environment quickly helped top executives focus on the collective issues that FedEx faces in the marketplace. In a collaborative work space, FedEx executives were challenged to see the business from the customer’s perspective. Over the course of two days - rather than several months - these executives had identified the key issues and designed a course of action.

Working together for future success

These accelerated solutions were then implemented throughout the FedEx organization and, at the end of the first year, the senior executive team came back together for the second FedEx Customer Summit. Their initial work was deepened to include new initiatives and new areas of the business that demanded immediate attention. Capgemini contributed to strategy development by moving beyond a “client-supplier” relationship to become part of a collaborative team. As Bill Margaritis, corporate vice president of worldwide communications, says: “Capgemini has an uncanny ability to understand our business, grasping key issues about the market, culture and competition. To be key advisers, consultants have to be proactive: an extension of our own team. Capgemini has done just that.”

Bill Read, account vice president at Capgemini, says that, “We acted as catalysts for change, but the driving force for development could only come from within. Our work with FedEx in customer service, international strategy development, information technology transformation and supply chain services is successful because of our collaborative approach.”

Written in collaboration with:
Mike Glenn
Executive Vice President Market Development & Corporate Communications Fedex
Bill Margaritis
Corporate Vice President Worldwide Communications Fedex
Bill Read
Account Vice President Capgemini