Determining How to Recover the Losses That Was Incurred As a Result of Fedexs Failure - Case Study Example

Determining How to Recover the Losses That Was Incurred As a Result of Fedex’s Failure Table of Contents Background 1 Statement of Problem(s) 2 Situation Analysis 2 Analysis of Alternatives 2 Recommendation(s) 3 Reference 3 Executive Summary The case focused on the concerns faced by Anita Kilgour, Office Manager of Desktop Innovations (DI) regarding Federal Express’ (FedEx) failure to deliver one of the two packages sent by her from Kitchener, Ontario to their dealer, the Heat Treating Services Unlimited in Simpsonville, South Carolina.

In a letter sent to FedEx’s Executive Desk personnel for Customer Service, Julie Curry, Anita relayed the facts of the incidents and would like to determine what course of action should FedEx do to make amends on the foul-up situation. After sending the letter of complaint, it was thereby recommended that a follow-up letter to request to be remunerated using the Money-Back Guarantee to refund for the service failure and failure to report package status. Likewise, a proposal to review and improve their customer service policies should be relayed and a concrete and positive action from FedEx should be anticipated prior to future dealings.

Background Anita Kilgour apparently sent two packages to Heat Treating Services Unlimited for the purpose of showcasing their product, the MainBoss Maintenance software at the Greater Charlotte Plant and Engineering Maintenance Show. The packages were sent through International Economy on October 7, Wednesday and Kilgour was advised that these would arrive at the identified destination by Monday, October 12. Apparently, only one package arrived on time; while on October 13, one day after the reported due date, FedEx was reported to have indicated that they “have been unable to track down” its whereabouts.

Statement of Problem(s) The problems or issues faced by Kilgour are as follows: (1) determining how to recover the losses that was incurred as a result of FedEx’s failure to deliver the other set of the package needed for the display booth; and (2) relaying the need for FedEx to focus on review and acting on incompetencies of its customer relations’ personnel. Situation Analysis Kilgour had already written a letter of complaint to FedEx regarding losing one of the packages sent and the inability of their customer relations personnel to appropriately return her calls and apprise her of the status of the lost package.

She was reflecting on being remunerated through the Money-Back Guarantees; however, her letter of complaint did not clearly indicate that she requests for refunds or appropriate credits for the service failure and failure to report package status. Analysis of Alternatives In this regard, the options open for Kilgour are as follows: (1) write a follow-up letter explicitly requesting to be refunded and to be paid additional amounts to cover the $1,200 lost from the booth fees that were set up at Charlotte and Simpsonville with the Money-Back Guarantee option as support; and (2) determine if an officer would call her directly to apologize and confirm making amends for the foul-ups made to ensure that policy changes on intensified customer services had been instituted.

The first option is crucial as the Money-Back Guarantee option specifically indicated that the customer should request for it and her letter of complaint did not do so and it was not sent on the indicated address. The amount of $1,200 should be charged to FedEx since their failure to deliver the package caused booth charges to get wasted. The second option would determine if any revision in customer service has been implemented. If so, Kilgour would be re-assured that FedEx’s services could be relied on for future uses.

Recommendation(s) The above options are thereby recommended to ensure that the necessary changes in customer service has been put into effect and would therefore make FedEx reliable in future shipping needs. By asking to be remunerated for the costs incurred due to FedEx’s failure to deliver the package on time, their personnel would be aptly trained to be more careful in abiding by their motto of delivering “on time, every time” [Dou]. Reference Dou: , (Dougall & Dorken, p. 145),