Cathay Pacific Connectivity Enhancement

3rd Apr 2001

Cathay Pacific Airways has selected a key component of the integrated Oracle E-Business Suite: Oracle Internet Procurement. Cathay Pacific`s staff will now be able to connect directly to their suppliers via the Internet to enhance co-ordination, relationships and purchasing efficiency.
The airline successfully implemented a live pilot system with Oracle Internet Procurement in less than sixty days. The solution, “CXeBuy,” including both Oracle Internet Procurement and Purchasing Intelligence, has been deployed initially to a selected group of users and suppliers in Hong Kong.
This e-Procurement initiative is one of cathaypacific`s key e-business projects, part of a $260 million investment over the next three years to further Cathay Pacific`s position as Asia`s leading e-business airline.
Internet Procurement is expected to help reduce the airline`s total expenditure by more than $40 million a year by 2003, with much of the savings coming from online purchasing and a substantial reduction in inventory carrying costs.
As part of its Internet procurement plans, Cathay Pacific is participating in a number of vertical and horizontal exchanges, including the Aeroxchange online marketplace (with twelve other major airlines worldwide) and local e-marketplaces including PCCW`s MartPOWER. As a result, Cathay Pacific expects to conduct 35% to 50% of its purchasing over the Internet within the next three years.
Oracle Internet Procurement standardises and simplifies Cathay Pacific`s procurement processes across departments and also enables the carrier to leverage its corporate-wide buying power. Suppliers also benefit from a more efficient, integrated, procure-to-pay process. Furthermore, in the future, Cathay Pacific will use Oracle Purchasing Intelligence to provide improved information on company-wide expenditure and supplier performance to enhance financial efficiencies.



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