FedEx Holiday Customer Service Dilemma

Topics: FedEx, Customer, Christmas Pages: 13 (1749 words) Published: April 20, 2014
Running head: FedEx Customer Service: A Management Dilemma

The FedEx Customer Service Holiday Dilemma
Southern New Hampshire University
QSO 500

Problem Background
Federal Express, also known as FedEx, is a delivery service business headquartered in Memphis, Tennessee. The company offers delivery services in all 50 states and across several U.S territories. FedEx offers services internationally, although this research will be focused on U.S. operations. FedEx’s mission is to deliver high quality service to its customers, provide a return on investment to its investors, and to maintain relationships with its vendors, suppliers and employees (FedEx 2014). While it is difficult for a company like this to rely on its own resources, FedEx has developed a collaborative business model under the FedEx brand umbrella. These companies include FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. Each one of the companies provides its customers with different kind of services depending on their requirements (FedEx 2014). In, 2008, FedEx launched a campaign entitled “FedEx Delivers to a Changing World”. The campaign titled: “FedEx Delivers to a Changing World,” specifically highlights how FedEx provides access to new markets, offers innovative solutions, supports the local communities and connects the world in sustainable ways. The overall goal of the campaign is to remind consumers that despite tough economic times, FedEx remains a reliable business partner (FedEx 2014). FedEx has some well-documented problems concerning delivery during the peak 2013 Christmas season (www.newshounds.com). During the latter half of December 2013, many customers did not receive their packages in time for Christmas morning, leading to unhappy kids as well as irate customers. This led to many customers claiming that they will no longer use FedEx delivery service to send packages.

Problem Statement
With the unusually high demand for delivery services that occurred in December 2013, the systems in place for FedEx did not allow the company to properly handle the increased demand for delivery. Though, FedEx introduced progressive and advance services to improve customer loyalty and attract new customers, their delivery services should have been more accurately forecasted for the 2013 holiday season. The customer demand and expectation for delivery appeared to fail the promise FedEx began promoting during its 2008 campaign projected to “deliver to a changing world” and has impacted the way customers view the service delivery company. In order to address the FedEx customer service holiday dilemma, researchers believe that a better understanding of customer requirements would help to provide insight on how FedEx can fulfill specific customer needs. Examining the issues faced by customers and FedEx delivery drivers within the context of a small community accessible to researchers will provide the basis for recommendations to reduce the percentage of complaints that increased during the latter half of December 2013, which is also considered the peak of the holiday delivery season. The problem that will be addressed in this research is how FedEx can better prepare for increased workload during the holiday season, so that similar issues do not occur again during the 2014 holiday season. In order to collect primary data, the researchers will use a small convenient sample of customers and FedEx delivery drivers using in-depth interviews within the exploratory research framework. Though the results of exploratory research are not usually useful for decision-making by themselves, this approach will help the researchers provide significant insight into the FedEx holiday service delivery dilemma.

Research Objectives
The objective of exploratory research is to identify key issues and key variables. While exploratory research is not generalizable to the population at large, it does offer an opportunity to...


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FedEx (2014). FedEx Strategy, mission, and values. Available:
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FedEx (2014). Overview and facts. Available: http://about.van.fedex.com/fedexoverview
[2014-02-23].
Yahoo Finance (2014). Available http://tinyurl.com/bhy8a57 [2014-02-28].
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