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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"Ariba Buyer enables FedEx to lower costs by
simplifying internal procurement processes, reducing purchasing cycle times, and
decreasing costs. By creating greater purchasing efficiencies for many of our
commodity products - such as PCs, office supplies, and vehicle parts - we are
able to better serve our internal customers while lowering our overall costs."
- Chris Cawein, Manager (Business Systems), FedEx, in 2000.
Background Note
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The history of Federal Express, the leading transportation,
logistics and supply chain management company dates back to 1971, when Frederick
W. Smith (Smith) felt the need for an airfreight system to facilitate quick
delivery of documents.
The company was incorporated in June 1971 at Memphis as Federal Express and
started operations in 1973.
After reporting its first profits in July 1975, Federal Express very soon
emerged a trendsetter in the express delivery industry. |
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By the early 1980s, Federal Express was well established and its growth rate
compounded at about 40% per year and the company crossed the $1 billion
revenue mark in 1983. The following year, FedEx began its overseas
operations with services to Europe and Asia.
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In 1985, the company started its regular scheduled
flight to Europe. In 1988, the first direct scheduled cargo service to
Japan was started. In the late 1980s, Federal Express acquired Tiger
International Inc. in February 1989, which helped the company become the
world's largest full service all-cargo airline.
In 1994, the company adopted FedEx as its primary brand name as part of
a corporate identity updation exercise. In 1995, the company acquired
Evergreen International Airlines, Inc.'s all-cargo route authority that
enabled it to enter China. FedEx became the sole US-based all-cargo
carrier with aviation rights to China. In 1998, FedEx acquired Caliber
System Inc. |
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