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B2B customers being left behind in rush to support B2C demand?
Carriers serving the business-to-business (B2B) and busi-ness-to-consumer (B2C) channels need to do a better job of
delivering the same levels of service to traditional B2B customers that the B2C segment has come to expect, according
to a top FedEx Corp. executive.
Speaking at a conference in Chicago, Mike Rude, director
of international marketing for the Memphis, Tenn.-based
giant’s FedEx Services unit, said B2B customer expectations
are “far below” those in the B2C world, where consumers
expect to order and receive products when, where, and how
they want them. However, B2B customers are starting to
expect comparable experiences from their providers, Rude
said.
Until now, Rude said, carriers have failed to give the
B2B channel what it needs to meet or exceed expectations,
despite having mountains of data and a track record of
IT innovation. This failure, he said, manifests itself in the
proliferation of shipment audit companies that make their
living correcting errors made during transactions, he said.
Rude used blunt rhetoric to describe the industry’s short-
falls in meeting B2B expectations, saying that “we’ve left
our customers behind,” and that “we have the opportunity”
to deliver a robust experience but “we’re letting it pass.”
The explosive growth of e-commerce demand has turned
the traditional parcel carrier model on its head. At FedEx,
much of the future investment will be earmarked for its
FedEx Ground parcel unit, which handles most of the
company’s e-commerce traffic. At UPS, B2C shipments are
expected to have overtaken B2B volumes by the end of 2017.
Rude also urged providers not to focus on trying to be
the next Uber and to instead give customers what they want
and need. “Do what matters to your customer,” he said.
“Don’t try to be cool.”
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