FedEx - The E-procurement Journey
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Case Details:
Case Code : ITSY016
Case Length : 10 Pages
Period : 1999-2001
Pub Date : 2002
Teaching Note : Available
Organization : FedEx
Industry : Service
Countries : USA
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
It Initiatives at FedEx
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IT initiatives at FedEx started in the late 1970s, when Smith
felt the need for a network of information systems - a sophisticated combination
of laser scanners, bar codes, software and electronic connections to support its
increasingly complex and widespread air and vehicles networks.
By late 1970s, FedEx had become the industry leader in the usage of information
technology (Refer Table IV for the IT initiatives introduced by FedEx). FedEx
had always used innovative electronic technologies to make shipping easier and
more productive. Over 65 % of the total volume was processed using an automated
shipping system... |
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About e-Procurement
Procurement systems allow companies to consolidate purchases, letting them
power over suppliers. Procurement systems reduce unauthorized spending and
administrative costs which in turn help companies to track spending patterns
and boost internal efficiency...
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FedEx Implements the
e-Procurement Solution
In June 1999, FedEx began a pilot implementation of
the Ariba e-procurement solution for ‘personal computers.'
Ariba's e-Commerce solution included the Ariba Operating Resource
Management System (ORMS) application, the Ariba ORMX application, the
Ariba Network platform and Ariba's integrated Net market deployment
solution that includes Ariba Internet Business Exchange, Ariba Commerce
Center and Ariba Market Suite... |
The Future
According to industry experts, by 2003, global
e-procurement system enabled spending was expected to grow by about
445%, public Internet market exchange spending by about 116% and
Internet B2B auctions by about 370%...
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