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Sales Force Integration at Fedex

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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Anusha Pratti
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133 views7 pages

Sales Force Integration at Fedex

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.

Uploaded by

Anusha Pratti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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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