By Deborah Gage  |  Posted 2005-01-13 Email Print this article Print

FedEx already saves money by steering inquiries to its Web site, so how can it justify spending $326 million a year on call-center reps?

Fedex Base Case

942 S. Shady Grove Rd.,
Memphis, TN 38120

Phone: (901) 818-7500

Business: Delivers packages and provides other business services in 215 countries and territories.

Chief Information Officer: Robert B. Carter

Financials in fiscal 2004 (through May 31, 2004): Revenue $24.7 billion; net income $838 million.

Challenge: Continue to improve customer service without raising costs.

Baseline Goals:

  • Improve productivity 5% a year, from $126,176 of revenue per employee in fiscal 2004.
  • Grow revenue 10% a year, from $24.7 billion in fiscal 2004.
  • Improve margin of operating profit to 10% of revenue, from 5.8% in fiscal 2004.

Senior Writer
Based in Silicon Valley, Debbie was a founding member of Ziff Davis Media's Sm@rt Partner, where she developed investigative projects and wrote a column on start-ups. She has covered the high-tech industry since 1994 and has also worked for Minnesota Public Radio, covering state politics. She has written freelance op-ed pieces on public education for the San Jose Mercury News, and has also won several national awards for her work co-producing a documentary. She has a B.A. from Minnesota State University.


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