Scribd Logo
Upload

Welcome to Scribd!

  • 267 views

    Fed Ex

    Uploaded by

    Kanika Verma
    FedEx implemented Project ARISE to integrate its Express and Ground salesforces in response to customers wanting a unified approach for package delivery services. ARISE aimed to develop a compensation plan balancing sales across Express, Ground, and International divisions. This would create a single point of contact for customers by coordinating the salesforces and shipping systems. The goals were to improve the customer experience, increase revenue from integrated sales, and help FedEx compete against UPS's single value proposition.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Fed Ex

    Uploaded by

    Kanika Verma
    267 views13 pages
    FedEx implemented Project ARISE to integrate its Express and Ground salesforces in response to customers wanting a unified approach for package delivery services. ARISE aimed to develop a compensation plan balancing sales across Express, Ground, and International divisions. This would create a single point of contact for customers by coordinating the salesforces and shipping systems. The goals were to improve the customer experience, increase revenue from integrated sales, and help FedEx compete against UPS's single value proposition.

    Original Description:

    FedEx ppt

    Original Title

    FedEx

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    FedEx implemented Project ARISE to integrate its Express and Ground salesforces in response to customers wanting a unified approach for package delivery services. ARISE aimed to develop a compensation plan balancing sales across Express, Ground, and International divisions. This would create a single point of contact for customers by coordinating the salesforces and shipping systems. The goals were to improve the customer experience, increase revenue from integrated sales, and help FedEx compete against UPS's single value proposition.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    267 views13 pages

    Fed Ex

    Uploaded by

    Kanika Verma
    FedEx implemented Project ARISE to integrate its Express and Ground salesforces in response to customers wanting a unified approach for package delivery services. ARISE aimed to develop a compensation plan balancing sales across Express, Ground, and International divisions. This would create a single point of contact for customers by coordinating the salesforces and shipping systems. The goals were to improve the customer experience, increase revenue from integrated sales, and help FedEx compete against UPS's single value proposition.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    Sales Force Integration at

    FedEx
    SITUATION ANALYSIS
    • Recent acquisition of RPS had lead to multiple FedEx salespeople
    calling the same customer due to different accounts
    • UPS (the main competitor) offered a single value proposition for both
    Express and Ground package deliver services
    • Need for a unified approach was desired by the customers
    • Hence Project ARISE
    ARISE
    • Project ARISE – an external need as well as an internal necessity
    • Important objective – Development of a compensation plan to create
    a well balanced sales approach between Express (Domestic and
    International) and Ground
    • Other Objectives :
    Sales (General) Sales (Management) Sales (Administration) Operations Training

    • Organisational • Performance targets • Pricing/Contracting • Coordination of • Cross training to


    Structure • Compensation • Reporting marketing/sales with ensure that account
    • Geographic Sales • Career development • Budget development FedEx Express and executives that
    territory design FedEx Ground historically sold FedEx
    • Recruitement
    • Customer operating companies Express could now
    segmentation sell both express and
    ground and vice versa
    • Customer retention
    • Call frequencies of
    each customer
    segment
    BENEFITS OF ARISE
    • Ease the process of dealing with FedEx
    • Integrated shipping systems would optimise costs
    • Improve customer ability to use FedEx services
    • Help in integrating the salesforce to beat competition (with UPS)
    • Provide opportunities to consultative selling
    • Move toward stronger relationship
    - Build importance of salesforce to customer
    COMPETITORS
    Overnight :
    • UPS
    • Airborne
    • USPS

    Ground :
    • UPS
    • Trucking Firms
    SWOT ANALYSIS
    Strengths :
    • Overnight package delivery industry leader
    • Best on-time express performance
    • High Brand recognition
    • Consultative selling combined with industry technology
    bringsinnovative solutions to save customers money
    SWOT ANALYSIS
    Weakness :
    • Two salesforce leading to two points of contact for customer
    • Two salesforce structures and computer systems
    • Two shipping tech systems
    • Weaker position in ground
    • Duplication of some operations (e.g. 2sets of trucks for ground and
    express)
    SWOT ANALYSIS
    Opportunities :
    • Ground growth at 8-10%
    • Cost savings from shipping systems integration (ARISE)
    • Build business when ARISE goes online
    • Cost savings when ARISE goes online
    • Cost savings from SF integration
    SWOT ANALYSIS
    Threats :
    • Commoditization of business leads to reduced revenue
    • Ground is commodity business
    • UPS stronger in ground
    • Customer confusion due to two salesforce
    • Customer confusion due to two shipping systems
    COMPENSATION PLAN
    • Compensation – 80% salary and 20% incentives & bonuses
    • In future – 70% salary and 30% incentives & bonuses
    • Goal Setting for incentives & bonuses performed at every 6 months
    for each individual territory or major customer
    • Revenue goals to be set for the 3 areas – Express, Ground,
    International
    • Account Executive’s bonus – 85% revenue growth goals + 15%
    average revenue per package (yield factor)
    • Quarterly bonus – (Base bonus from Revenue yield matrix) x BPI
    • Revenue Yield Matrix :
    - Revenue Element – Sum of all revenues (Express, Ground and
    International)
    - Yield factor – Compare the weighted average yield for the quarter to that
    of the same quarter of the previous year
    - Weighted average yield – average of the yields for each major product
    type (Domestic – Letter, Domestic – Package, International, and Ground)
    • Account executives eligible for a bonus if they achieve at least 80% of
    quarterly revenue target
    • BPI – Balanced Performance Incentive Multiplier
    • 90-100% of revenue goal = BPI of 1.0
    • 101-110% of revenue goal = BPI of 1.2
    • >=111% of revenue goal = BPI of 1.5
    • An account executives’ BPI – Average of multiplier values across all
    three service offerings (International, Express, Ground)
    CLASS DISCUSSION POINTS
    • Need for ARISE?
    • How can ARISE contribute to FedEx?
    • Why integrate the salesforce?

    You might also like