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Fedex and Sap Team Up to Provide Integrated Logistics Solution

In: Business and Management

Submitted By abhie2001
Words 480
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FedEx and SAP Team Up to Provide Integrated Logistics Solution
Federal Express and SAP are working together to provide software that integrates FedEx’s shipment tracking capability and logistics with SAP’s R/3 ERP software. A module of the software runs on R/3 and automatically generates FedEx shipping documents and tracking numbers for products ordered using SAP’s R/3 software. When the products are delivered by
FedEx, transactions are sent from FedEx to update data in R/3. The goal is to make R/3 work like a standard business process and automatically trigger other processes, such as proof of delivery and payment. The applications are designed to give the 13,000 enterprises deployed on SAP R/3 real-time package life-cycle information.
The SAP/FedEx applications, dubbed The Product, dovetail with SAP’s development of a suite of supply-chain products. “We think this is a turning point in the industry,” said
Paul Wahl, chief executive officer of SAP AG. Wahl says that applications for spotting bottlenecks, reacting to customer orders, and linking transportation with production schedules are among the five top priorities for SAP. Others include electronic commerce buying tools and systems for meshing Internet transactions with financial systems.
“Most of our customers are in the process of integrating an enterprise system,” says
Laurie Tucker, senior vice president of logistics, electronic commerce, and catalog, a $500 million FedEx unit. “They are looking for ways to improve return on investment and are interested in any business process that can be integrated, as opposed to being separately invoked. Our most innovative customers are pushing us and their other suppliers for that integration.” The functionality provided by the FedEx/SAP alliance is no small matter. The two companies are talking about systems that enable businesses to track…...

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