What Happened to Fedex

I do not know when Federal Express became too big for it’s own good, but it most certainly has.  Fedex, as it is now known, officially began operations in 1973 and today ships 10.2 million packages to over 220 countries daily; which is most certainly a gargantuan management challenge.  Over the years Fedex earned a well deserved, reputation as the guaranteed method of getting your package delivered "When it Absolutely, Positively has to be there overnight."

I have used Fedex through most of my career.  Like many business people, I have come to depend on them; but unfortunately, in recent years, something has changed.  As my mother used to say, “They have gotten too big for their britches.”

Last week, I sent a package via Fedex for next day delivery to an associate in California.  I believed the package would arrive when scheduled; backed by the Fedex “money back guarantee”.  In spite of the fact that there were no weather delays or service alerts, my package was not delivered on time but delivered a day late.  This caused my company many phone calls and great inconvenience.  When I contacted Fedex about a refund, I learned, to my surprise, the shipment was not covered by the Fedex guarantee.

Supposedly, without my knowledge or approval, my account was subject to a waiver of delivery guarantee.  I never signed any document or was made aware of this waiver nor would I have agreed to such a waiver.  Guaranteed delivery is the primary reason I use Federal Express.  Unless offered a significant discount; I can see no reason to waive the delivery guarantee.

After a rather heated conversation with the Fedex representative in Revenue Services, she agreed, “…only as a courtesy”, to refund the shipping costs to my credit card.   I am now awaiting contact by a Fedex sales representative to explain the parameters of this waiver on my account.  If you are a small business, who regularly uses Fedex, be sure to inquire about this waiver of delivery guarantee.

As corporations consolidate and become larger they are more often than not led by corporate finance.  In this environment, customer service is viewed as another operating expense to be controlled.  Corporations need to be reminded that customer service is not just another operating expense; it is why customers choose to do business with them in the first place.