Cash and credit collection policies of FedEx Bangladesh
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This report was basically prepared on the company which is the world’s largest Express Transportation Corporation known as FedEx Express. This report is confined with the Global operations of the company but more focused on the Bangladesh Context of FedEx where they are being represented by the Joint venture and licensee of Federal Express Corporation named FedEx-Bangladesh Express co Ltd. The main objective of the report is the company's cash and credit collection policies/methods. FedEx does 90% of their business on credit. So credit customers are the most important aspect of their business when it comes to revenue earning. The credit customers have their profile account in FedEx and are invoiced with a monthly bill. They do their monthly transactions and pay the bill to FedEx for their service at the end of the month. There are special customers who are provided with discounts by the approval of the senior management team according to the amount of business they give to FedEx. This part of the topic is not covered in the report as the information of the clients and the discount rates are confidential. The sales personnel of the company plays a key role in approaching potential customers and also collect the due payments at the month end from them. The finance and accounts department makes the invoice and does the billing every month and keeps track of the receivables. FedEx is a service company, so their main functions are customer service and satisfaction. The financial aspects of the company are not as critical as other non-service companies. I was mainly appointed to work in the finance department and hence provided as much information that was provided by the head of the department. The various departments, operational overview, sales and marketing overview and other important areas of the company are concisely shown in the report. Finally I have also suggested various probable recommendations, those I feel can be of help in order to improve the situation and recommended various other options to develop the overall credit collection strategy.