Submitted to:

Mahmudul Haq
Assistant Professor
BRAC Business
School
66 Mohakhali, Dhaka-
1212, Bangladesh

Prepared by:

Rubaiyet
Kabir ID:
10104018 BBA

Date of Submission: 07-05-15

 An Internship Report on

Cash and Credit collection Policies of FedEx Bangladesh

21st August 2014 Letter of Transmittal

Mr. Mahmudul Haq

Assistant Professor
BRAC Business School
66 Mohakhali, Dhaka – 1212, Bangladesh

Subject: Submission of Internship report on “Cash and Credit Collection Policy of

Federal Express Bangladesh”.

Dear Sir,
This is to inform you that “Cash and Credit Collection Policy of Federal Express
Bangladesh" accompanies with this letter.

I have put my utmost ability and honest effort to cover all the aspects related with
the topic. This report includes all the materials and the contents those I have
covered in my BBA program and also gives a view of the financial activities of
FedEx Express in Bangladesh.. The report is prepared using secondary data.
However, there might be some areas of limitation those are not considered by me
for my constraints.

I believe that the report will meet your expectations and I will be always available
if there any queries or amplification arise about the report contents.

Thank you.
Sincerely,
Rubaiyet Kabir
ID: 10104018
 Acknowledgements

The internship paper entitled “Cash and Credit Collection Policy of Federal Express
Bangladesh” has been prepared for the partial fulfillment of my BBA Program of Brac
University, Dhaka. I would like to offer my wholehearted gratitude and respect to a good number
of people who offered encouragement, data and information, inspiration and assistance during
the course of constructing this paper.

It would be difficult to prepare the paper and to present it in a lucid manner within stipulated
time without the help of my course advisor Mr. Mahmudul Haq, Assistant Professor. His utmost
care, constant support and meticulous supervision guided me through the process.

My complete gratification goes to Mr. Md. Tanveer Madar, Managing Director and Mr. Bashir
A.K. Chowdhury, Executive Director of FedEx Bangladesh. I am also very thankful to the entire
company and staffs who have helped me a lot with support, concepts and information of the
company.

I am very thankful to the BRAC University authority for helping me out in completing
Internship program and helping me to finish my BBA program successfully.
 Executive Summary

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.
Table of Contents

Part-1 Organization Part: 01

1.1 Organizational overview 02

1.2 Overview of FedEx Express 02

1.3 Overview of FedEx Bangladesh Express company 12

1.4 Report preview 15

1.5 Type and Sources of Information 15

1.6 Limitations 15

1.7 Organizational Chart of BanEx 16

Part-2 Job Description and responsibilities: 18

2.0 Departmental review on BanEx 19

2.1 Customer Service and Operations 19

2.2 Call Center 24

2.3 Sales 25

2.4 Finance and Accounts Department 27

2.5 Marketing 28

2.6 Electronic Data Processing(EDP) and Information Technology(IT) 29

2.7 Human Resource Department and Administration 30

Part-3 Project part 31

3.1 Introduction 32

3.2 Types of Payment 33

3.3 Average Collection Period 37

3.4 Steps of credit realization policy 38

3.5 Recommendation 39

3.6 Limitations 41
3.7 Conclusion 42

Bibliography 43

Appendix 44
1. The Organization

1
1.1 Overview of FedEx Express:

When the FedEx Corporation (from herewith to be referred to as “FedEx”) was

founded by Frederick W Smith in 1973, it was called “Federal Express”. He
started Federal Express with funds of over $80 million, making it the largest
company of its time ever funded by venture capital.

Today, FedEx has over 143,000 workers worldwide, and delivers more than 3
million express packages to 220 countries daily. FedEx provides both document
and freight deliveries as well as additional supporting services. Based in
Memphis, FedEx Corp. provides a portfolio of transportation, e-commerce and
business services through several divisions including FedEx Express, FedEx
Ground, FedEx Freight, and FedEx Office (formerly Kinko’s).

FedEx Express, the largest segment of FedEx, is the worldwide leader in the
global air express industry at the moment. The worldwide network of
transportation and information system of FedEx Express set the industry standard
for time-definite delivery, shipment processing and tracking technology, logistics
management, reliable service and customer management.

FedEx live by their ‘Purple Promise’- where they try to “make every FedEx
experience outstanding”. This is the foundation of their business. Having such
values has helped FedEx maintain strong reputation in the market, receiving
awards such as FORTUNE’s “Top 10 World’s Most Admired” and “100 Best
Companies to Work for” (source: 2009Annual Report). Additionally, FORTUNE
magazine recognized FedEx for its commitment to diversity and women among
the "100 Best Companies to Work For." FedEx is the largest company (by number
of employees) and the only transportation company on that year's list.

2
Following from the above overview, FedEx was at one points called FDX
Corporation, FedEx Corporation was founded in January 1998 with the
acquisition of Caliber System Inc by Federal Express. Through this and future
acquisitions, FedEx sought to build on the strength of its famous express delivery
service and create a more diversified company that included a portfolio of
different but related businesses. With the purchase of Caliber, FedEx started
offering other services besides express shipping.

In January 2000, FDX Corporation changed its name to FedEx Corporation and
rebranded all of its subsidiaries. Federal Express became FedEx Express, RPS
became FedEx Ground, Roberts Express became FedEx Custom Critical, and
Caliber Logistics and Caliber

Technology were combined to make up FedEx Global Logistics. A new

subsidiary called, FedEx Corporate Services was formed to centralize the sales,
marketing, and customer service for all of the subsidiaries.

FedEx History Highlights:

1975-First profit

1977-Bigger Aircraft

1978-New York City Stock Exchange

1984-Operation in Europe

1985 - Service Contractors

1989 – Flying Tigers

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1994 – Change of Logo KSA market

1994 – ISO 9001

1995 – Subic Bay Hub

1996 – India operation

1997 – Dubai Facility

- Benetton Team

- Caliber System

1999 – CDG Hub

- SEP Launch

- Ferrari Sponsorship

2000 – Remaining Acquit ions

- “ FedEx Ground

- “ FedEx Trade Networks

- “ FedEx Customer Critical

- “ FedEx Services

- “ FedEx Home delivery

- “ FedEx Express

- “ FedEx Freight

2002 - FedEx-BMW F1 Team Sponsorship

FedEx Mission Statement

4
FedEx Corporation will produce superior financial are turns for its shareowners
by providing high value-added logistics, transportation. Requirements will be met
in the highest quality manner appropriate to each market segment served. FedEx
Corporation will strive to develop mutually rewarding relationships with its
employees, partners and suppliers, Safety will be the first consideration in all
operations,. Corporate activities will be conducted to the highest ethical and
professional standards.

FedEx Facts

Description – World’s largest express transportation company

Began operation – April 17, 1973

Worldwide headquaters – Memphis, Tennessee, U.S.A.

Founder-Fedrick W.Smith

Principal Officer – David J.Bronczek, Precedent & CEO

Annual revenue - $ 15.5 billion

Employees – 140,000 Worldwide

Countries served -215

Worldwide airport served – 365 worldwide

Worldwide aircraft fleet – Total of 664

Ground fleet – More than 46,000

FedEx world service centers – Approximately 3.2 million daily

Daily global fleet capacity – Approximately 26.5 million pounds

Airfreight volume – More than 7 million pounds daily

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Average call volume – More than 500,000 calls daily

Global Service Participants (GSP) worldwide – 152

Worldwide WEB address – http://www.fedex.com

FedEx Worldwide divisions:

US and Canada –Headquarter in Memphis

Asia Pacific – Headquarter in Hong Kong.

Latin America and Caribbean –Headquarter in Florida

EMEA – Headquarter in Brussels

6
 FedEx Products and Service Offered in Bangladesh:

Product/
Description Main Features & Benefits Restrictions
Services
Highly reliable,  Total shipment weight  Individual
express, time- containing many individual packages may
definite, customs- packages is unlimited. weigh as much as
International Priority Service (IP)

cleared, door-to-  Delivery commitment time is 72 68 kg

door service in hours depending on the origin  Each shipment can
more than 220 and destination of the shipment contain up to 10
countries around  Envelop, Pak, Tube, 10kg & different packages.
the world. 25kg Box are available
depending on the type & weight
of the packages.
 Maximum declared value for
carriage is $50,000 and $100 for
FedEx Envelope/Pak

FedEx Packaging:

 FedEx Letter
 FedEx Pack
 FedEx Boxes
 FedEx Tube
 FedEx 10 Kg Box
 FedEx 25 Kg Box
 Customer Package

7
FedEx Regions of the World:

FedEx has divided its service regions of the world into 11 different regions. They
are Africa, Asia Pacific, Australia, Canada, Caribbean, Central America, Europe,
Indian Sub-Continent, Mexico, Middle East and South America.

Values of FedEx:

FedEx operates globally according to the following key values:

People: We value our people and promote diversity in our workplace and in our
thinking Service: Our absolutely, positively spirit puts our customers at the heart
of everything we do Innovation: We invent and inspire the services and
technologies that improve the way we work and live.

Integrity: We manage our operations, finances and services with honesty,

efficiency and reliability.

Responsibility: We champion safe and healthy environments for the communities

in which we live and work.

Loyalty: We earn the respect and confidence of our FedEx people, customers and
investors every day, in everything we do”

8
 FedEx Express 5-Point Strategy:

Federal Express has five strategies that govern business tactics. These are as
follows:

1. To improve service levels

2. To lower unit costs

3. To establish international leadership and sustain profitability

4. To get closer to the customer, and

5. To maintain the People-Service-Profit Philosophy.

In ‘People-Service-Profit’ philosophy ‘People’ goal is the continuous

improvement of management’s leadership, ‘Service’ standard is 100 percent
customer satisfaction and ‘Profit’ goal is much like any other company’s goal.
This philosophy governs how FedEx runs its business, and defines strategies.

First-Mover Advantage of FedEx Express:

Federal Express has had first-mover advantage in several areas, including:

 Being a global express transportation company.

 Advanced technology and communication throughout the company’s operations.
 Incorporating smaller companies with similar operations under its belt
to synergize and control more of the market.

In 1994 Federal Express officially shortened its marketing identity to FedEx; a

term that has become a synonym for “to ship overnight” FedEx was first use the
web with a online package tracking service in November of 1994. Strategic use of
Information Technology and online package tracking systems, reliability, and
faster service helped Federal Express gain market dominance in express market

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worldwide. In January 2000 FedEx Express became FedEx Corporation by
acquisitions of FedEx Ground, FedEx Trade Networks, FedEx Customer Critical,
FedEx Services, and FedEx Home delivery, FedEx Express, FedEx Freight.

Though the company did not show a profit until July 1975, it soon became the
premier carrier of high-priority goods in the marketplace and the standard setter
for the industry it established. In the mid-1970s, Federal Express took a leading
role in lobbying for air cargo deregulation that finally came in 1977. These
changes allowed Federal Express to use larger aircraft (such as Boeing 727s and
McDougall DC-10s) and spurred the company’s rapid growth. Today FedEx
Express has the world’s largest all cargo air fleet, including McDonnell-Douglass
MD-11s and Airbus A-300s and A-310s. The planes have a total daily lift
capacity of more than 26.5 million pounds. In a 24-hour period, the fleet travels
nearly 500,000 miles while its couriers log 2.5 million miles a day the equivalent
of 100 trips around the earth.

The company incorporated in June 1971 and officially began operations on April
17, 1973, with the launch of 14 small aircraft from Memphis International
Airport. On that night, Federal Express delivered 186 packages to 25 U.S. cities
from Rochester, NY, to Miami, Fla. Company headquarters were moved to
Memphis, Tennessee, a city selected for its geographical center to the original
target market cities for small packages. In addition, the Memphis weather was
excellent and rarely caused closures at Memphis International Airport. The airport
was also willing to make the necessary improvements for the operation and had
additional hangar space readily available. Today FedEx is the world’s largest all-
cargo airline, with over 600 aircraft linking together a truly global network.
Everyday, 9 major sorting centers or hubs worldwide feed 39,500 delivery
vehicles that cover an amazing 2.5 million miles around the globe. Over 140,000
employees at FedEx provide services in 215 countries, offering some of the

1
fastest delivery. Providing on-time delivery builds reputation for FedEx.
Everyday FedEx successfully delivers over 26.5 million pounds of freight and
nearly 3.2 million packages worldwide. FedEx’s service reputation helped fuel its
growth from small beginnings in the US back in 1973 to today’s global turnover
of more than $ 15.5 billion. The company entered its maturing phase in the first
half of the 1980s. Federal Express was well established. Competitors were trying
to catch up to a company whose growth rate was compounding at about 40
percent annually. In fiscal year 1983 Federal Express reported $1 billion in
revenues, making American business history as the first company to reach that
financial hallmark inside ten years of start-up without mergers or acquisitions.

Being a “first” company resulted in many firsts for awards and honors, too. In
1990, Federal Express became the first company to win the Malcolm Baldrige
National Quality Award in the service category. It also received ISO 9001
registration for all of its worldwide operations in 1994, making it the first global
express transportation company to receive simultaneous system-wide
certification.

FedEx’s commitment, use of technology and innovation strategy has proven to be

a key part of its success through the past two decades. FedEx was first to operate
a hub and spoke distribution system and first to introduce full shipment tracking.
FedEx maintain control of customer’s shipment by scanning it at several stages of
transit using hand-held computers, Super Trackers, so that where the shipment is
can be easily and exactly known. Through the Internet customers can have access
to on-line tracking, transit time estimates, country specific information, and many
other on-line features.

1
In January 2000, FDX Corporation changed its name to FedEx Corporation and
rebranded all of its subsidiaries. Federal Express became FedEx Express, RPS
became FedEx Ground, Roberts Express became FedEx Custom Critical, and
Caliber Logistics and Caliber Technology were combined to make up FedEx
Global Logistics. A new subsidiary called, FedEx Corporate Services was formed
to centralize the sales, marketing, and customer service for all of the subsidiaries.

1.2 Overview of FedEx-Bangladesh Express Co. Ltd:

Bangladesh Express Company Limited (BANEX) was established in 1991. It is a

private limited Company – registered in Bangladesh. The company is the
exclusive licensee of Federal Express Corporation of USA since May 1991.
BANEX is the Global Service Participant (GSA) of Federal Express. The
company, with its 18 world service centers and about 295 staff offers express
export and import services assisted by electronic communications system.
BANEX currently has access to around 368 airports in 214 countries through the
operations of its principal, FedEx. The company maintains online communication
system for faster shipment trace and tracking.

BANEX uses Electronic Communication System for faster shipment tracing &
tracking and also for the integrated communication with all the FedEx service
centers worldwide. The company has to follow the rules and regulation of FedEx
that is reflected by the monthly SRG (Service Reference Guide), but can take
sales and marketing plan independently. Like FedEx, BANEX’s top priority is to
achieve service excellence and 100% quality. Customer satisfaction is the

1
ultimate goal of BANEX. Keeping this in view, BANEX created a vast network
with its customers by visiting every week and providing solutions to their
problems. Also through online, Customer Service Agents are always keeping
track of shipments of customers. BANEX is totally committed to provide quality
services that always meet the needs and expectation of customers for reliability,
safety, economy and on-line delivery of shipments. The company exercises
Quality Management System (QMS) and continual improvements of its services,
that can be comply with the requirements of ISO 9001-2000.

Mission Statement of BANEX:

Bangladesh Express wants to be acknowledged as the market leader in the express

transportation solutions and services. They shall continuously strive for
excellence by using their dedicated team of professionals and the development of
the infrastructure; they will set them apart from the other. BANEX shall adapt to
the latest technical know-how in enhancing productivity and creating a truly
world class customer friendly organization.

We will ensure that everyone across the organization understands our mission. It
will be like a beacon of light that will show us the way and take us from one year
to another and also allow us to reaffirm that we are not only the right path but also
the path we had exactly planned to take. We will be leaders through business
excellence, clearly of operational process and the value and quality of our service.
Above all, our growth strategies will be defined and clear to all our workers and
associates. We will always have the all-for-one mentality”

1
 Quality Policy of BANEX:

A quality policy describes the total plan of a company for providing the feathers
and characteristics of a product or service that bear on its ability to satisfy most of
its customers. The Managing Director of BANEX adopted a quality policy. The
quality policy is as follows:

“BANEX is totally committed to provide quality services that always meet the
needs and expectation of customers for reliability, safety, economy and online
delivery of shipments. To achieve this objective, BANEX provides all the
necessary resources to ensure a well equipped, adequately trained and
experienced manpower to take proper care of customer requirements.

BANEX emphasizes that quality is the shared responsibility of its entire staff. The
company ensures that all the personnel are familiar with and work to the
company’s work policies as well as in conformity with the legal and other
obligatory requirements and are determined to comply with the requirements of
ISO 9001, 2000 and continually improve its services and Quality Management
System (QMS). This QMS has brought the unique opportunity for BANEX to
review the quality objectives and achieve business excellence through continual
improvement. Customer satisfaction is the company’s ultimate goal.”

1.3 Objectives of the Report

The report contains the following broad objectives:

 Orient the reader with FedEx in brief.

 Gathered an idea about the function and operation of Bangladesh Express Co. Ltd
(BanEx).
 Analysis the current outbound and inbound practice of shipments in BanEx.
 Analysis the policy guide lines of F&A department of BanEx.

1
1.4 Report Preview

The report is divided into three major parts. The first part describes the Federal
Express Corporation in brief followed by an overview of Bangladesh Express Co.
Ltd. In the second part. In the third and final part, current outbound and inbound
practice of shipments in BANEX Co. Ltd. is described and recommendations are
made.

1.5 Type and Sources of Information

Only secondary data has been used to formulate this report. For the organizational
overview, information were collected from various sources that includes
previously carried out research works, interview with the respective authority of
BANEX, inter office notice boards, publications that includes monthly SRG, GSP
News, the Internet and other prospectus of FedEx, and the personal experience of
the writer during the Internship.

1.6 Limitations

• For collecting information regarding the organization, the report writer mainly
depended on personal experience during Internship

• All the minor details of the company’s information may not be possible to cover
or to recommend. Only major sectors are covered through the report.

• Some information from secondary sources may not be possible to gather due
to company’s business secrecy

1
1.7 ORGANIZATIONAL CHART OF BANEX:

The detail organ gram of the organization structure is given at figure.

Abbreviations / Acronyms used:

C & F = Clearing and Forwarding, SrDGM = Senior Deputy General Manager, CSSV = Customer
Service; SR = Senior; WSC = World Service Centre; HRD=Human Resource and Development;
Asstt = Assistant; HUB-ops= Hub Operation; Mgr = Manager; Exec=Executive; Biz = Business

1
1
2. Job Description and
Responsibilities

1
 DEPARTMENTAL REVIEW OF BANEX:

2.1 Customer Service & Operations (CSSV & OPS) Department:

The customer service & operations department works under the supervision of
both Managing Director and Executive Director of the company.

The department also has a DGM, two Assistant Managers for Hub-Operation and
CSSV & OPS, four In-charges, some couriers and dispatchers. Front counters,
Customer Service Agents of Call Center, Senior Executives of Import and Export
and Chief C & F are also included in this department.

During the Internship period, the report writer observed that, officials of this
department remain extremely busy for coordination with the customers and
processing of shipments. The people of this department also entertain the new
comers-for example; conduct of the newly recruited employee and internship
program was the responsibility of this department. The most important job of this
department is all the necessary formalities of outbound and inbound shipments.
Therefore, this department is the backbone of the company.

Operations of CSSV & OPS in brief as follows:

 Operations of Outbound Express of CSSV & OPS (Document & Non-Document)

 Welcoming walk-in-customers and receiving shipments directly from them
 Receiving of customers call, recording it into pick-up sheet and assigning of
courier to the attend customer
 Receiving of shipments form customs and bringing it to WSCs
 Verifying, processing of shipments and forwarded to central hub.

1
 Tally with transfer challenge for checking, verification and sorting of shipments
at hub
 Consolidation, manifest, and dispatching to airport
 Receiving of shipment at airport, addressing airport formalities, and handling
over the shipments to airlines
 Sending pre-alert to all gateways-Dubai, Singapore and Hong Kong.
 Operations of Inbound Express of CSSV & OPS (Document – DOX)
 Receiving pre-alert from Dubai, Singapore and Hong Kong and passing the pre-
alert information to senior executive import
 Collecting of MAWB form freight import at airport for customs release
of documents console bags
 Bringing document shipments to freight transit area for scanning and then to
BANEX cage
 Examination and release of documents shipment and bringing to hub
 Scanning & sorting at hub and forwarding to WSC for delivery
 Tally with shipment challenge and starting delivery
 Proof of Delivery (POD) scan and preparation of non-conformity.
 Operations of Inbound Express of CSSV & OPS (Document – NON- DOX)
 Receiving pre-alert from Dubai, Singapore and Hong Kong and passing the
pre- alert information to senior executive import
 Collecting of MAWB form freight import at airport for customs release of non-
documents console bags
 Bringing non-document shipments to freight transit area for scanning and then
to BANEX cage for Received In Country (RIC) reporting, sorting, miss-routed,
shortages and overages.
 Preparing of Shipment Arrival Notice and delivery of it to consignees
 Clearing of NON-DOX shipments from customs if consignee authorize
 Consolidation of cleared NON-DOX and transportation to import dept. and then
forwarded to XSCs
 Delivering of shipments by respective XSCs

2
 Proof of Delivery (POD) scan and preparation of non-conformity report if
applicable
 Investigation of customers complain in case if non-conformity.
 Prohibited Items for shipment within the U.S:
The following flowchart shows the process flow of a typical shipment moving
through the FedEx Express system from origin to destination:

2
2
The following items are NOT acceptable for transportation via any FedEx
Express USA service (package or freight)

1. Cash, currency, collectable stamps, and coins

2. Live animals, including birds, reptiles, fish except via our Flying Tigers Air
Cargo Service. Edible seafood, such as live lobsters, crabs or other types of
shellfish for human consumption are acceptable, provided the shipper is in
compliance with state and federal laws.

3. Animal carcasses will not be accepted. Animal heads and other parts for
taxidermy may be accepted but must be properly packaged. Restrictions do
not apply to materials intended for consumption.

4. Human corpses or body parts, cremated or disinterred human remains

5. Shipments whish require us to obtain a federal state or local license for

their transportation.

6. Shipments, which may cause damage or delay to equipment, personnel

other shipments.

7. Lottery tickets and gambling devices where prohibited by federal state or local
laws.

8. Hazardous waste, used hypodermic needed less and / or syringes or

medical waste.

9. Packages/shipments those are wet. Leaking or emit an odor of any kind

10. Packages that are wrapped in Kraft paper

11. Shipments whose carriage is prohibited by law, status or regulation of any

state in which the shipment may travel

12. Shipments whose carriage is prohibited by applicable federal, state or

local law.

2
 2.2 Call Center

One of the busiest departments of the company is call Center. Customers call at
FedEx Call Center for the status of shipment, complain, credit balance, rate,
etc. and highly efficient and expert Customer Service Agents (CSA)

Provide complete solutions with a you-view-point, “Hello, FedEx Call Center,

how may I help you?” Accessing the FedEx international package information
system, COSMOS, agents can quickly advice customers about such things as
paperwork Requirements, packaging, customs procedure and acceptable
commodities. Call Center is open 24 hours. There is an In-Charge of Call Center
who coordinates and assists CSAs.

Operations of Call Center in brief:

 Tracing and tracking of shipments 24-hour basis

 Customer complains, claims, inquire handling
 Reporting on service failure to Dubai
 Addressing non-conformity and report to Dubai.

2
 2.3 Sales

The responsibility of Sales Department is to sell BANEX / FedEx Products /

Services and enhance company’s image in the market by understanding and
reviewing customers needs and requirements at different levels. The Deputy
General Manager, Sales fixes a sales target for all sales personnel at the
beginning of BENEX financial year based upon the decisions of management. A
weekly planning of sales activities is also done and discussed in the weekly
meeting of the sales department for its effective implementation.

Sales people have to make minimum seven sales calls daily including two new
and five existing customer through face-to-face sales and also through Tele sales.
The sales people also evaluate the credit worthiness of the clients and the amount
of credit is approved by the DGM, Sales.

Vision statement of Sales Department of BANEX:

 Maintain year over year IP growth by at least 15%-20%

 Identify new customer segments and develop them according to their projected
growth
 Develop the existing accounts further
 Increase the number of agents in strategic locations to tap new business
and ensure our presence across the country.
 Introduce various FedEx products in the Bangladesh Market
 To meet the future demands of the market we will devote ourselves to introduce
and sell various FedEx products in the Bangladesh market such as IXF, IPF,
IPD and IEF.
 Invest in the development of Sales professionals
 Effective training for the sales professionals in FedEx products, services,
and solutions, self-development and motivation to make them tremendously

2
 competent and the best in their field. Create conviction, commitment and passion
in selling FedEx
 Provide logistical support to the sales force like access to computers, Internet and
FedEx related information that can be used as a selling tool
 Access to customer data to analyze customer behavior, patterns, trends
and customer segmentation for future business strategies.

The department accomplishes the following sequentially tasks:

 Search & target prospects and plan for sales call (weekly sales planning
through internal, external and other sources)
 Set primary & alternative call objective and face-to-face calls daily (7calls daily
including 2 new and 5 existing)
 Access business needs of customers and offer BANEX services
 After negotiation with the customer propose rates and services for
approval through the Area Sales Manager
 Prepare offer letter with net rates and obtain acceptance (verbal or written) from
customer
 Signing service contract with credit customer and open profile account
 Distributing account profile among concerned dept.

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2.4 Finance and accounts Department

The major objectives of Finance & accounts Department are as follows:

Verification of the physical existence of all company’s assets and thus ensuring
custodianship. Monitoring as well as assessing proper IT requirements pertinence
to the activities of the company and there by facilitate accounting procedure and
achieve financial growth. To implement the financial policies of the company and
to revise the policies as per needed. In Accounts parts of this department have ----

Billing section: This sector monitoring all the prepaid accounts postpaid accounts
preparing monthly, fortnightly, weekly and export miscellaneous invoice for
exporting shipments and importing shipments with their duty and taxes.
Sequentially the activities of billing section are following:

• Airway bill entry in to computer system and storing.

• Validation sheet checking.

• Discount brand.

• Customer profile for new customers including customer instruction

(if any).

Miscellaneous sector: This sector controlling the cash in flow and out flow Like
walk in customer payment, credit collection from profiled customer and internal
and external expenses. Sequentially the activities of imprested accounts section
are following:

2
• Checking time period.

• Storing vouchers, getting approval

• Verifying figures with summary statement

• Posting accounts into imprested accounts.

• Maintaining staff recorded on attendance recruitment transfer, interest and

promotion.

• Preparing/verifying salary statement–paying /transferring bank accounts.

• Consideration of income tax.

• Payment revived with documents and making payment. Posting

of accounts as per accounting standers.

• Providing and distributing different report as required. Implementing

/attending internal and other financial audits and addressing issues of any.

• Assessing / paying VAT, income tax –as per regulatory requirements.

• Submitting return to government authority in time.

2.5 Marketing

Marketing Department works under the supervision of the Executive Director.

This department consisting of Marketing Specialist whose main job are planning
and implementing of marketing activities such as advertising, promotional
campaigns, public relations, providing market information to Sales department
and communication with FedEx. BANEX present advertising includes billboard
ads, brochures & booklets and directories. Presently BANEX is not using media

2
 like television, newspaper for advertising. Promotional campaigns include
festival bonus, complimentary gifts, and discounts. BANEX also sponsors
sporting events, fairs, trade shows, etc for keeping relation with public as its
marketing strategy.

The major activities of this department can be listed as follows:

 Develop marketing plans and strategies to maximize FedEx

 Brand awareness and visibility in Bangladesh
 Take care of FedEx brand promotional activities
 Carry out market research, customer satisfaction survey
 Collect and review information on market, top competitors.

2.6 Electronic Data Processing (EDP) and Information Technology (IT)

Information Technology Department of BANEX acts as a bridge between

management team and operation. A software named COSMOS, developed by
IBM, used by FedEx worldwide as well as BANEX. The major job of IT dept. is
to provide 24-hour trouble-free operation of BANEX communication system.

The department accomplishes the following tasks:

Electronic data processing for manifestation AWB, credit cash, AFR, credit PP,
etc.

 MIS related activities, report producing, and data backup and system security.
 Planning and executing maintenance activities of IT and net work equipment
 Software programming, system support, system design and analysis.

2
 2.7 Human Resource department and Administration:

Sequentially the activities of human resource department are following:

 Develop and implement HRD policy

 Select and higher staff
 Assess executive training need, if decided by the management
 Schedule and executing training
 Evaluated training effectiveness
 Staff administration.
 Year performance evaluation of staff
 Plan and schedule training on monthly /six monthly basis.

3
 3. Project:
Cash and Credit Collection
policy

3
 3.1 Introduction

This part of the report is prepared as a guideline for the operating activities of
Finance & Accounts Department of the company. This will lay the foundation for
a system of internal financial controls.
Airway bill (AWB) is a ticket similar to airline ticket. AWB is mandatory for the
movement of any shipment within the FedEx System. This is the ticket where the
customer first comes in contact with the company. They have to fill up a
procedure form. It is a contract between shipper and FedEx. Every phases of
AWB should be completed accurately, otherwise the delivery would be delay,
billing would be inaccurate and even losing of shipment may occur. The sender is
responsible for completing the whole AWB information including the signature.
This AWB is necessary in all departments to process with their operations. Under
one AWB, 999 packages and 10 commodities can be shipped. In an AWB there
are –

 Sender’s name. Company, phone, addresses

 Recipient’s name, company, phone, addresses,
 Shipment information
 Express package service
 Packaging (envelope/pak/10kg box/25 kg box/other);
 Payment options
 Transportation charges (sender/recipient/third party/credit
card/cash Check / cheque)

A twelve-digit number is also included in AWB, which is called AWB

number SRG (Service Reference Guide) is designed to enhance employees,

3
 workers, managers and all the people who work for the FedEx customer
efficiency, accuracy and productivity all over the world where FedEx service is
available. All the necessary things for shipment are included in this SRG like,
country codes, zip codes, cities served, countries served, countries not served,
country wise necessary export documentation requirements, weight limit, service
availability, country wise prohibited items, items for extraordinary value and so
on. Couriers, dispatchers, executives, in-charges, managers have to follow the
SRG. The idea of SRG is to bring all the employees and workers under the same
rule. SRG is published monthly.

3.2 Types of payment

1. Cash – Shipper pays for shipment in cash on pre-paid basis, which is direct
payment. When a pick up is made shipper or sender pays the bill.

2. Credit: - Customers can pay on credit basis. This credit can be monthly, weekly
and fortnightly. Customs must have credit agreement with FedEx for the credit
facilities. After agreement FedEx open a profile for the customer. Duration and
amount are specified in the agreement. If the customer failed to pay in due time,
credit facility would be stopped until the customer pay full amount

3. Charges collect (CC) / AFR (AIR FREIGHT ORIGIN OF BILL RECIPIENT) :

In this type the consignee at where the shipment will send will make payment.

C.C. shipment can be made by two ways :

i) Profile – Credit profile customers can also enjoy AFR / CC shipment. For
credit client to use AFR / CC shipment.
 A valid FedEx account number, and
 An undertaken on 150Tk stamp between FedEx and customer is required.

3
 ii)Non-Profile- Non profile customers can use AFR / CC shipments by
two ways –

 have to deposit the same amount of the actual shipment, or

 collect the routing order from the destination FedEx through consignee
 Third Party – Payment can also be made by third

CASH

Cash is received through company’s money receipts. Each WSC is responsible to

collect the cash payment and deposit along with the respective money receipts to
the corporate finance and accounts department. In addition to corporate finance
and accounts department, Chittagong and Khulna offices are authorized to receive
the cash but they are to follow the instructions of corporate finance and accounts
department. Each Collection in the designated offices is required to deposit to the
respective bank account. No cash receipts can be used for expenditure.
In corporate finance and accounts department, each deposit must be entered into a
collection register manually. After the entry, the receipts are handed over to the
concerned revenue section for posting to match against revenue. Collection
register will generate cash collection report and this report is required to submit to
the designated authority with 10.00 am in the following month.

Cash Disbursements

Cash disbursements should be controlled strictly as this is a liquid asset. Basic

control of cash disbursements should be as follows;

3
 1. Management will approve payment vouchers;
2. All payments especially vendor payment must be made through cheque;
3. The signatories of the cheque will be top management and top level staff if
authorized
4. No cheques should be prepared without the approval of payment vouchers.

Advances

There is some advance payment required in day to day business operations. They
are listed below:

• Advance for Custom Forwarding – Export;

• Advance or Custom Clearances – Import Non Dox;
• Advance for Custom Clearance – Import Dox

The above advance is imperative for clearing & forwarding of shipments. The
procedures of this advance will be as follows:

1. Advances will be made available to the clearing and forwarding

operational people at airport after the approval competent authority;
2. The payment made as advance will be charged to person received in the general
ledger;
3. The vouchers for which advance is made will be forwarded on the predefined
time frame to the finance and accounts department;
4. The respective section of the department will process the vouchers for
approval from the authority concerned;
5. If any discrepancy is found on examination will be notified to the concerned
party;

3
 6. On approval of the vouchers they will be posted to the respective head of
the accounts and the advance accounts should be adjusted;
7. The accounting interval process will be within the first week of the
following month of the expenditures;
8. Measures should be taken to minimize the time lag of adjustment.

Credit

 Only profiled credit customers will enjoy the credit facility

 The invoice will be raised centrally from the finance and accounts department
on period basis.
 Invoice is prepared by the first week of every month and the customer has
to settle full dues within the invoice submission month ( 1-3 months)
 On receipt of the documentary information such as copy of bill of entry, air
waybills, etc from operations, the clearing billing section of the department will
put the information in the data base spreadsheet.
 At the end on the agreed time lag, invoice is to be issued from the data base
information to the respective customers.
 The collection information such as money receipt should be placed in the data
base in accordance with customers to know the receivable status of the
customers concerned.
 At the end of the month batch posting is to be made to the respective accounts in
general ledger in respect of revenue as well as collection.

3
Credit Screening

Credit is provided to customers after determining few information about the

customer. The sales people of the company are responsible of this screening
process. In case of profile customers the establishment of sales profile may be
initiated after a number of cash sales have been completed. The sales profiles
should be reviewed periodically. Obviously, the level of the credit limit or rating
that is set depends upon the financial stability and reputation of the customer, the
customers’ previous payment record and the eagerness of your company to do
business with the client. Credit references from banks (if possible) or from other
suppliers doing business with the particular customer are useful sources of
information in determining a credit limit.

Invoicing and Collection

Preparation of an invoice should take place according to the agreement with the
customers or the set policy for the specific service. Controls as a reconciliation of
invoices to the revenue documents such as air waybill, bill of entry should be
implemented to ensure that all services rendered are invoiced. Cancellation of an
invoice or adjustment of the amount due is formalized through a money receipt or
credit note, a copy of which is to be sent to the customer.

3.3 Average Collection period:

The average collection period is the average number of days between 1) the date
that a credit sale is made, and 2) the date that the money is received from the
customer. The average collection period is also referred to as the days' sales in
accounts receivable, also known as the days sales outstanding(DSO) of the
company is as follows-

3
ACP OR DSO= Accounts receivables
Average daily sales/360
111,833,059
= 504,697,523
= 79.77
= 80 days approximately

Therefore, the average collection period of the company is approximately 80

days.

*the figures are taken from the annual report of the company, which is provided in the appendix of
the report.

3.4 Steps of credit realization policy

step-1: Friendly reminder within a time period of 3/4 days (based on time limit)
step-2: Intimation to sales for their recommendation/advice and follow-up
accordingly. We send request to zonal sales manager with copy to concerned
authority and members.
step-3: Issue the last request letter as per the visit by the head of Credit Collection
and follow up.
step-4: Credit profile is converted to cash after last request if not paid
step-5: If required list of the customers are provided to the Executive Director for
their visit

3
step-5: Issue the DISCONTINUATION letter after the visit by head of Credit
Collection
step-6: Intimation to client before issuing the legal notice and follow-up
step-7: Handed over to the legal advisor ffor issuing the the legal notice
step-8: Head of Credit Collection prepare a letter to Executive Director for
seeking his permission for filing case if not paid after issuing the legal notice.
Step-9: File a case if still not paid after issuing legal notice and follow-up.

Future Plan

The company is going to invest to make the department fully automated through
the establishment of GL based Integrated Software. When this will be in place,
the department will be able to generate different types of reports in addition to
mandatory ones on daily basis. The ensuring program will ensure the followings:

a) Daily Financial Position / statements;

b) WSC Wise Daily Profitability Status;
c) Department Cost Status;
d) Different Cost Statements;
e) Implementation of Master Budget;
f) Different types of managerial statements / reports.

3.5 Recommendation:

The success of the express companies is largely depends on reliability, faster

service, and 100% accuracy. Express companies have to engage themselves into
more strategic decisions to keep the business sound. FedEx uses innovation

3
 strategy and strategic use of information Technology and online package tracking
systems, reliability, and faster service helped Federal Express gain market
dominance in express market worldwide. Bangladesh Express Co. Ltd. also
practices the strategy being the part of FedEx. BANEX is offering such a service
that has a unique value in our day-to-day busy life. There is little scope to
recommend. Because, BANEX is practicing FedEx operation very effectively and
efficiently. The recommendation below only depends on the personal experience
of the report writer during the internship period.

The recommendations are:

 Couriers need to be more careful for the processing of shipments and executing
Air Waybills. It may reduce time as well as miss routing. All the necessary
export documents should be attached with the shipment accurately.
 The sales people should be given more training on communication for effective
sales and faster credit collection
 The company should enhance advertising and promotional campaigns like
exclusive TV ads, more billboard ads. Though FedEx is renowned name
worldwide as well as in Bangladesh, exclusive TV ads may result more
market growth.
 Cost is a major factor in Bangladesh. If there is any scope to reduce cost, the
company should do so. Because, competitors like D H L is gathering more market
share in Bangladesh by reducing cost.
 Proper trend manpower add for different sectors like to attend inbound call, out
bound call to provide and receive e-mail, fax and tracking in the present position
of shipments in call center
 Current situation of Hub cross the label of satisfactory but there is a lot of
opportunities for improvement—like addition of skilled manpower to perform
the work more effectively by efficient work force.

4
 3.6 Limitations

 For collecting information regarding the organization, I mainly depended on my

personal experience during Internship
 All the minor details of the company’s information may not be possible to
cover or to recommend. Only major activates / sectors are covered through the
report.
 I have given much information, which was provided us by the concerned
personnel of the organization, and the various persons who are involved in the
company’s relevant activities. They have helped us by their knowledge and
practical experiences. But for their tight schedule and workload it was not
possible for me to get more information from them which would surely helped
the report to earn more.
 I am doing the report by my limited knowledge over various things in
business research and regarding the express transportation and logistics
industry.
 Time limitation in preparing the report was there.

4
3.7 Conclusion:

Banex service in Bangladesh, is the strong brand of Federal Express Corporation

of USA, has been tested by the people form all profession but the highest
numbers of consumers who have tested BANEX services are from the ready-
made garment industries. From the consumer survey it is clear that US exporter
switch over strong brands Europe base exporter are generally hard core loyal to
their brands DHL and UPS. Banex service is the highest selling of Fed Ex brand
in Dhaka Metro in non-document market .It has 55% weight shear of the non-
document market of Dhaka metro no other brand of FedEx has a constant trended
of sales in non-document market. So it can be said, Banex service does not face
any tough competition from other brand. The sale personal play an important role
in motivating a consumer to purchase a strong brand.32% of the consumer were
attracted by Banex /FedEx service for its image building capability. It was also
found that Banex attracted 35% of the consumers by its modern concept.
They think this brand gives them separate value for money from other
competitors.

4
Bibliography:

Websites:

http://www.fedex.com/us/investorrelations/financialinfo/2007annualreport/ (Accessed:
th
13 July, 2011)
th
http://news.van.fedex.com/intl/region/emea (Accessed: 10 July, 2011)
th
http://about.fedex.designcdt.com/ (Accessed: 15 July, 2011)
th
http://en.wikipedia.org/wiki/Courier (Accessed: 14 July, 2011)

th
http://fedex.com/ch/shippingguide/package3.html (Accessed: 12 July, 2011)
http://www.accountingformanagement.org/average-collection-period/

4
Appendix:

Abbreviations:

GSP= Global Service Partner

SOP= Standard Operating Procedure

POD= Proof of Delivery

ATL= Above the line Promotion BTL= below the line Promotion HAL= Hold At Location

BCN= Bill Consignee

IP= International Priority Services

IES= International Economy Services

COSMOS= Customer online screen for manually operated service

4
 BANGLAOESH EXPRESS CO. LTD.
Ibrahim Chamber, 95 Moti|heel C/A, Dhaka-1000.

INCOM E STATEMENT
Fch the year curled June 30, 2013

TAMA
PARTICULARS NOTES
30.06.2013

A. NET INCOME : (Schedule - B) 9.00 504,697,523

B. EXPENSES :
Operational Overhead 10.00 331,535,969
Communication 11.00 11,130,047
Salary & Allowances 12.00 99,085,666
Sales Promotion 13.00 5,087,205
Transt›oi tat1oil 14.00 3,?4S1,2J0
Admin. Overhead 15.00 32,577,U40
5,033,-/3G
Depreciation
487,801,753

16,895,770
OPERATIONAL PROFIT (A-B)
1600 982,580
Add : Non Operating Profit
17,878,350
NET PROF T BEFORE TAX
17.00 6,878,157
eds : Prof ision for Tax
11,000,193
NET PROFIT AFTER TAX
156,734,140
Add : Balance as per Last Account 167,734,333
BALANCE AS ON
30.06.2013

Director Managing Director G. KlBE

Chartered Accountants
ADVANCE & DEPOSIT : Taka 134,821,730
Break up of above amount are given
below:
 Particulars Amount in Taka
Security Deposit with Sonali Bank Ltd. 150,000
Security Deposit with Agrani Bank Ltd. 3,000
Security Deposit with UCBL 5,000
 FEDERAL EXPRESS : Taka 1,100,464
Details are given
below:
Particulars Amount in Tatra
Balance 24,335,189
Add : FedEx Charges during the year 399,671,130
424,006,319
299,473,040
Less: Service Charge 239,522,370
Soul ce Tax 59,950,670

124,533,270
Less : Pays ent Adjustment 123,432,815
Balance as on 30.06.2013 1,100,464

CURRENT LIABILITIES : Tal‹a 17,759,566

Details of above Current Liabilities Tk. 17,759,566/- is given below:

Particulars Amount in Tal‹a

Rent for tne month of June, 2013 853,897
Staff Salaiy & Directors' Allowance including P.F. 6,217,517
Telephone 127,581
Internet 195,102
Audit Fee 150,000
Electricity 249,389
Freight Consolidation & Handling Charges 6,355,449
VAT and Duty & Taxes (i) 1,013,456
Liabilities foi Goods & Service s 2,388,605
Tax Payable (ii) 208,570
Balance as on 30.06.2013 17,759,566

(i) VAT and Duty & Taxes

Particulars Amount in
Expoi“t VA1 Jul the momth ul Julie, 201J Tal‹a
Import (Cage) VAT for the month of June, d74,927
2013 111,380
Duty & Tax a ainst Document Import for June, 2013 28,149
1,013,456

%”
* DHAKA t/
*%zo r,r*”"
Tax Payable 208,570

Particulars Amount in Tal‹a

Provision for Income Tax as per Income Statement 6,878,156
Less: Payment during the year 6,669,586
208,57

NET Revenue : Tal‹a 504,697,523

Details is dS L!
nder:
Particulars Amount in Tal‹a
Outbound Shipments - VAT applicable [Schedule-B] 80,087,367
Outbound Shipments - VAT exempted 430,614,747
Inbound shipments 7,068,840
Total Including VAT 517,770,954
Less VAT 13,073,431
Net Revenue 504,697,523

OPERATIONAL OVERHEAD : Tal‹a 331,535,9G9

Particulars Amount in Tal‹a
FedEX Charge including TDS 160,148,761
Freight Consolidation 127,650,469
Warehouse Charge (FT Charges) 1,771,014
Loading & Unloading Charges 647,313
C & F Charges including Docs Customs Duty 36,305,695
Handling Charges 1,056,069
Box, Cartoon & supplies Import exp. 3,719,013
Fooding & Lodging 237,635
Total 331,535,969

COMMUNICATION EXPENSES : Tal‹a 11,130,047

Particulars Amount in Tal‹a

Fax Expenses 55,961
Postage & Stamp 296,631
Telephone Expenses 1,494,967
Mobile Phone Expenses 2,672,868
Internet Bill 2,305,218
Courier Mail 4,304,402
Total 11,130,047