Management information systems – Federal Express (FedEx)

Answer the questions to each case study then do a 600-800-word narrative summary of both cases. Case 1-1 Federal Express (FedEx), founded in 1971, handles an average of 3 million package-tracking requests every day (http://about.van.fedex.com/). To stay ahead in a highly competitive industry, the company focuses on customer service by maintaining a comprehensive Web site, FedEx.com, where it assists customers and reduces costs. For example, every request for information that is handled at the Web site rather than by the call center saves an estimated $1.87. Federal Express has reported that customer calls have decreased by 83,000 per day since 2000, which saves the company $57.56 million per year. And because each package-tracking request costs Federal Express 3 cents, costs have been reduced from more than $1.36 billion per year to $21.6 million per year by customers using the Web site instead of the call center. Another technology that improves customer service is Ship Manager, an application installed on customers’ sites so users can weigh packages, determine shipping charges, and print shipping labels. Customers can also link their invoicing, billing, accounting, and inventory systems to Ship Manager. However, Federal Express still spends almost $326 million per year on its call center in order to reduce customers’ frustration when the Web site is down or when customers have difficulty using it. The company uses customer relationship management software called Clarify in its call centers to make customer service representatives’ jobs easier and more efficient and to speed up response time. 1. Is technology by itself enough to ensure high-quality customer service? 2. What are Federal Express’s estimated annual savings from using information technology? 3. What are a couple of examples of information technologies used by Federal Express? Case 1-2 Faced with strong competition by online stores, retailers are looking for new ways to improve customer service and lower operating costs. They have found mobile technology to be the key for achieving this goal. Scan-as-you-go mobile devices are a logical next step after the self-checkout used by many retailers. Retail experts predict the new mobile-based retail devices could eventually bring about the end of traditional cash register systems. The mobile checkout stations pioneered at Apple stores appear to be the future. The goal is to speed up and improve customer service and to keep consumers in stores and spending. Ahold USA’s Stop & Shop retail stores use a mobile device called Scan It that hangs on the handle of the shopping cart and allows customers to shop and scan as they go through the aisles. If there is a coupon for an item, the device quickly gives the customers a credit and the total is recalculated. The device is smart enough to alert the customer if there is a coupon for a complementary item, such as coffee creamer if the customer has purchased coffee. Shoppers who use the Scan It device spend about 10 percent more than average. Clothing retailer Nordstrom is also using mobile devices, which it issues to its sales associates on the floor so they can scan items on the spot and let customers pay without going through the cash registers. The Home Depot uses a device called First Phones as an inventory tracker. If the item is out of stock, First Phones quickly notifies the customer whether a nearby store has it, then holds the item for the customer to pick up. Starbucks is using a digital wallet model that allows customers to pay using their smartphones. 1. According to this case study, what is an upcoming key technology that will be used in retail stores to improve customer service? 2. What is the name of the device used by Ahold USA’s Stop & Shop retail stores? 3. What will be the role of smartphones in the future of shopping?