Avance

FedEx

The Challenge

Managing billions of pounds worth of orders for millions of customers annually is a complex task, especially when goods are being delivered across borders, taking into consideration hundred of separate duty and tariff systems. Non-payment of import taxes is a significant cause of late delivery of consignments, and handling these unpaid tariffs while maintaining customer goodwill is a highly complex task, especially in the context of FedEx’s hugely complex day-to-day logistics and customer service provision. FedEx required a slick, multilingual solution that improved payment performance and resulted in significantly improved customer satisfaction levels.

The Solution

Avance’s Theorem database is a web-based solution which enables FedEx to track millions of customer orders at any one time. Theorem enables FedEx to pinpoint goods that are being held specifically due to non-payment of import taxes, and contact customers quickly and easily for payment. It also allows FedEx to keep customers updated on the progress of their goods, significantly improving the customer experience. Recovery of import taxes was costly to FedEx, both in terms of hours spent in trying to match customers to orders and in terms of the financial costs incurred by the length of time taken to recover the taxes.

The Result

Avance’s solution has improved FedEx’s capacity to track orders, improving the time taken to identify cases of non-settlement of import duty, and thereby speeding the recovery of duty, improving FedEx’s financial performance. Importantly, it has also led to improved service levels for FedEx’s customers, who are reunited more quickly with consignments reserved by customs and excise bodies pending settlement of duty. The quality of the customer experience – provided with full details on the progress of goods and an accurate time scale for delivery – has provided a welcome boost to FedEx’s already highly regarded brand.