Sales Force Integration At Fedex

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Case Analysis: Sales Force Integration at FedEx Introduction FedEx planned to carry out a major change in their sales force through a project named ARISE, which was short for “Achieving Revenue and Information Technology Synergies across the Enterprise”. In few words their main objective was to consolidate the FedEx and RPS sales units into a single sales force, customers were often confused or overwhelmed by the actual sales structure. In order to FedEx to achieve their vision, account executives would have to be in the capacity to offer both air and ground delivery offerings. FedEx’s upper management faced a challenging project essentially because they had to develop a new compensation plan for the combined sales force, compensation being one of the most critical elements of the overall sales integration effort. Challenges Because major changes had to be made to their compensation plan to successfully integrate FedEx Express and Ground sales, it is very important to determine the right balance in compensation. The key to creating a good compensation plan is balance between base salary and incentives. Sales compensation can be complex and while there are many ways of approaching it, maintaining a competitive edge in terms of the “right mix” of base salary and compensation is critical. It’s also important to keep in mind that compensation typically ranks very high in importance among sales people. Often, salespeople are heavily motivated by compensation and competitive environments. Compensation Plan The most important aspect of a successful compensation plan is to keep it simple. Complex sales compensation plans often frustrate sales teams and those who must manage it. Keeping it simple, however, requires serious work and thought. Below are the most important issues to consider when developing a sales compensation plan for FedEx. Base
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