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    Sales Force Integration at Fedex

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    Anusha Pratti
    FedEx is facing challenges from industry competition and changing customer demands. They must redesign the compensation plans of their Sales Force unit to better integrate it following their project ARISE. The alternatives are to fully integrate the sales forces into one unit with a single shipping system and consultative selling approach, or to maintain separate sales forces but increase coordination between them. The recommendation is to train the sales forces on ARISE, cross-train them, create sales support specialists, eliminate duplication in territories to reduce costs, and maintain a salary plus incentives compensation model to better integrate the sales forces while achieving cost savings.

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    Sales Force Integration at Fedex

    Uploaded by

    Anusha Pratti
    94 views7 pages
    FedEx is facing challenges from industry competition and changing customer demands. They must redesign the compensation plans of their Sales Force unit to better integrate it following their project ARISE. The alternatives are to fully integrate the sales forces into one unit with a single shipping system and consultative selling approach, or to maintain separate sales forces but increase coordination between them. The recommendation is to train the sales forces on ARISE, cross-train them, create sales support specialists, eliminate duplication in territories to reduce costs, and maintain a salary plus incentives compensation model to better integrate the sales forces while achieving cost savings.

    Original Description:

    FedEx case analysis HBR

    Original Title

    SecBfedx

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    FedEx is facing challenges from industry competition and changing customer demands. They must redesign the compensation plans of their Sales Force unit to better integrate it following their project ARISE. The alternatives are to fully integrate the sales forces into one unit with a single shipping system and consultative selling approach, or to maintain separate sales forces but increase coordination between them. The recommendation is to train the sales forces on ARISE, cross-train them, create sales support specialists, eliminate duplication in territories to reduce costs, and maintain a salary plus incentives compensation model to better integrate the sales forces while achieving cost savings.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    94 views7 pages

    Sales Force Integration at Fedex

    Uploaded by

    Anusha Pratti
    FedEx is facing challenges from industry competition and changing customer demands. They must redesign the compensation plans of their Sales Force unit to better integrate it following their project ARISE. The alternatives are to fully integrate the sales forces into one unit with a single shipping system and consultative selling approach, or to maintain separate sales forces but increase coordination between them. The recommendation is to train the sales forces on ARISE, cross-train them, create sales support specialists, eliminate duplication in territories to reduce costs, and maintain a salary plus incentives compensation model to better integrate the sales forces while achieving cost savings.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Sales Force Integration at FedEx

    Background
    Company: Context:
    • FedEx corporation started overnight delivery of • Intense industry competition
    packages through a dedicated air network
    • Increase in prices of fuel
    • This service was in high demand till improved SCM
    • Declining economies of the countries
    and JIT demanded for lower cost ground deliveries
    • Government regulations globally
    • Along with the express and ground delivery services
    (after acquiring RPS) they also provided other services • Weather conditions Volatility
    such as: less than truckload, niche services, non • Changing customer demands
    step ground services • UPS strong market shares in ground services
    • The company was considered as highly innovative
    company

    Collaborator: Competitors: Customer:


    FedEx’s RPS division comprised of The key competitors that are directly Private clients, consulting services
    owner/operator, independent competing with the company include, for logistics, transportation and
    contractors who were responsible for Airborne Freight, USPS, UPS, DHL and other SCM needs
    vehicle ownership & maintenance and TNT
    fueling
    Problem Statement

    The current concern faced by executives & management of FedEx is the


    project ARISE and the redesigning of compensation plans of the SF unit
    Alternatives

    Integrate
    Do not integrate Maintain status
    current sales
    but coordinate Quo
    force into one
    Evaluation of Alternatives

    • Develop one point • Maintain one SF but create


    of contact coordination mechanisms
    • One shipping • Team selling for larger accounts
    system • Set ground rules at corporate to
    Alternativ • More focus on
    Alternativ match Express approach
    e1 e 2 • Move towards higher goals for
    consultative selling ground
    • Compensation • Create sales support specialist
    system for ground to do the technical integration
    with customer systems.
    not delivering
    Recommendations

    Train on ARISE

    Cross train

    Create sales support specialist to assist with tech integration

    Eliminate duplication in territories- eliminate position in SF if necessary – cost saving

    Maintain salary plus incentives

    Cost saving from integration of both SF and ARISE


    THANK YOU

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