FedEx - The E-procurement Journey|IT and Systems|Case Study|Case Studies

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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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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It Initiatives at FedEx

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...

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

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...

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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