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    Sales Force Integration at Fedex: Sales and Distribution Management

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    Siddharth
    The document discusses sales force integration at FedEx. FedEx Express and FedEx Ground currently have separate sales forces. The document evaluates alternatives of fully integrating the sales forces or maintaining separation but increasing coordination. It recommends fully integrating the sales forces to create a single point of contact for customers, focus on consultative selling across both divisions, and implement a new compensation plan incentivizing cross-selling between Express and Ground services. This integrated approach is expected to increase revenues and customer loyalty by bundling pricing and services.

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    Sales Force Integration at Fedex: Sales and Distribution Management

    Uploaded by

    Siddharth
    388 views7 pages
    The document discusses sales force integration at FedEx. FedEx Express and FedEx Ground currently have separate sales forces. The document evaluates alternatives of fully integrating the sales forces or maintaining separation but increasing coordination. It recommends fully integrating the sales forces to create a single point of contact for customers, focus on consultative selling across both divisions, and implement a new compensation plan incentivizing cross-selling between Express and Ground services. This integrated approach is expected to increase revenues and customer loyalty by bundling pricing and services.

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    The document discusses sales force integration at FedEx. FedEx Express and FedEx Ground currently have separate sales forces. The document evaluates alternatives of fully integrating the sales forces or maintaining separation but increasing coordination. It recommends fully integrating the sales forces to create a single point of contact for customers, focus on consultative selling across both divisions, and implement a new compensation plan incentivizing cross-selling between Express and Ground services. This integrated approach is expected to increase revenues and customer loyalty by bundling pricing and services.

    Copyright:

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

    Sales Force Integration at Fedex: Sales and Distribution Management

    Uploaded by

    Siddharth
    The document discusses sales force integration at FedEx. FedEx Express and FedEx Ground currently have separate sales forces. The document evaluates alternatives of fully integrating the sales forces or maintaining separation but increasing coordination. It recommends fully integrating the sales forces to create a single point of contact for customers, focus on consultative selling across both divisions, and implement a new compensation plan incentivizing cross-selling between Express and Ground services. This integrated approach is expected to increase revenues and customer loyalty by bundling pricing and services.

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    You are on page 1of 7

    Sales and Distribution Management

    Sales Force Integration at


    FedEx

    Submitted by- Group 12


    Ayush Agarwal (PGP10011)
    Hatim Cyclewala (PGP10021)
    Mohini Singh (PGP10032)
    Mona (PGP10095)
    Rishabh Gupta (PGP10103)
    Shubham Jalan (PGP10113)
    Sudhanshi Parakh (PGP10055)
    Background of the Company
    Company Customers Collaborators Competitors Context
    Beginning: 1973, FedEx corporation started FedEx Express- 1.5 million Largest acquisition - FedEx Express Technological advancement
    overnight delivery of packages through a FedEx Ground- 65000 Caliber and all its -UPS
    dedicated air network subsidiaries (especially -Airborne Freight Emergence of Internet
    After acquisition of RPS (catering to ground FedEx Express : RPS) -US Postal Services communication – which took
    delivery services), the company came up with Businesses with more than -DHL document delivery out of
    Project ARISE to integrate their operations to $10 million in Acquisition of regional -TNT Post Group business
    form a single sales automation system annual FedEx billings and air cargo companies - Deutsche Post
    clients like General such as Tiger Just in time inventory
    Strength: Electrics, Daimler Chryslers International (1989), FedEx Ground management techniques
    • Overnight industry leader – 46% Share and Wesco Corp, Evergreen International -UPS
    • High brand recognition geographically covering Airlines(1995) -Trucking firms Rise of e-commerce and
    • Best on time express performance and a ~50 states need for home delivery
    good tracking system Independent
    Weakness: Fed Ex Ground: contractors who were Deregulations in air Freight
    • Two sales forces leading to two point of Entire continent of US and responsible for vehicle industry
    contact for customers majorly metropolitan cities ownership,
    • Weaker position in ground maintenance and
    Opportunities: Later, expansion to fueling
    • Cost savings from Sales Force integration countries led to key
    • Bundled Pricing opportunity companies’ addition in the
    • International expansion customer base
    Threats:
    • Intense industry competition
    • Increase in prices of fuel
    • UPS strong market share in ground services
    Decision 1. Need to integrate Sales Force to bring unified customer
    contact

    Problem 2. Redesign compensation plan of the sales force


    Alternatives
    01 Integrate the sales force of FedEx Express and FedEx Ground

    02 Do not integrate but coordinate

    03 Maintain Status Quo – not considered


    Evaluation of Alternatives
    Integrate Do not integrate but coordinate
    Develop one point of contact for Maintain two SF’s but create
    customers coordination mechanisms.

    One shipping system Option B


    (versus two today)
    Set Ground goals at corporate to match
    More focus on consultative selling Option A Express approach

    Create sales support specialists to


    do the technical integration with
    Build Ground Services Business customer systems

    Sales strategy followed in both the units is very different from Couldn’t take the advantage of bundled price
    one another ( for Express it was consultative selling while for approach (which can be gained by selling through
    ground, affiliative strategy was used) single account executive)
    Salesforce motivation was also different (recognition for
    Express and commissions for Ground)
    Recommendations
    Recommended alternative - Integrate the systems

     Make the best use of transaction specific assets of individual sales force (leverage on their contacts)
     Redefine the compensation system by the kind of expertise one possesses
     Target should be profit/yield based and must have minimum qualification criteria where cross sell
    is necessary (minimum 20% target to be achieved from each segment)
     Compensation plan for all must comprise of 25% of incentives and rest, salary(fixed)
     Segregation of customers should be prioritised on the basis of relationship or cross sell done
     Training – Job rotation to be introduced to make everyone comfortable with different processes
     As UPS has higher share on ground services so focus should be paid to advertise a bit more to earn
    back RPS client base
     Integration of consultative and affiliate strategy would result in higher revenues and loyal customers
    Thank You

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