Scribd Logo
Upload

Welcome to Scribd!

  • 101 views

    E-Procurement at Cathay Pacific E-Business: Anand Singh (PGP/19/004)

    Uploaded by

    Diksha
    The document discusses Cathay Pacific's implementation of an e-procurement system called CXeBuy. Key managers at Cathay Pacific had concerns about CXeBuy including that it lacked inventory management capabilities and required streamlining supplier relationships. The benefits of e-procurement for Cathay Pacific's purchasing department included better spend information, more efficient sourcing, and reduced costs for requests. Financial metrics like time savings and money saved from reduced administrative costs and better negotiations could quantify e-procurement benefits. A balanced scorecard could measure short-term process improvements and long-term benefits like user satisfaction, alignment with business objectives, and adaptability. Cathay Pacific's e-procurement strategy contributes to its mission by reducing costs, improving information and compliance,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    E-Procurement at Cathay Pacific E-Business: Anand Singh (PGP/19/004)

    Uploaded by

    Diksha
    101 views3 pages
    The document discusses Cathay Pacific's implementation of an e-procurement system called CXeBuy. Key managers at Cathay Pacific had concerns about CXeBuy including that it lacked inventory management capabilities and required streamlining supplier relationships. The benefits of e-procurement for Cathay Pacific's purchasing department included better spend information, more efficient sourcing, and reduced costs for requests. Financial metrics like time savings and money saved from reduced administrative costs and better negotiations could quantify e-procurement benefits. A balanced scorecard could measure short-term process improvements and long-term benefits like user satisfaction, alignment with business objectives, and adaptability. Cathay Pacific's e-procurement strategy contributes to its mission by reducing costs, improving information and compliance,

    Original Title

    Cathay-Pacific-CAN-Solutions.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses Cathay Pacific's implementation of an e-procurement system called CXeBuy. Key managers at Cathay Pacific had concerns about CXeBuy including that it lacked inventory management capabilities and required streamlining supplier relationships. The benefits of e-procurement for Cathay Pacific's purchasing department included better spend information, more efficient sourcing, and reduced costs for requests. Financial metrics like time savings and money saved from reduced administrative costs and better negotiations could quantify e-procurement benefits. A balanced scorecard could measure short-term process improvements and long-term benefits like user satisfaction, alignment with business objectives, and adaptability. Cathay Pacific's e-procurement strategy contributes to its mission by reducing costs, improving information and compliance,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    101 views3 pages

    E-Procurement at Cathay Pacific E-Business: Anand Singh (PGP/19/004)

    Uploaded by

    Diksha
    The document discusses Cathay Pacific's implementation of an e-procurement system called CXeBuy. Key managers at Cathay Pacific had concerns about CXeBuy including that it lacked inventory management capabilities and required streamlining supplier relationships. The benefits of e-procurement for Cathay Pacific's purchasing department included better spend information, more efficient sourcing, and reduced costs for requests. Financial metrics like time savings and money saved from reduced administrative costs and better negotiations could quantify e-procurement benefits. A balanced scorecard could measure short-term process improvements and long-term benefits like user satisfaction, alignment with business objectives, and adaptability. Cathay Pacific's e-procurement strategy contributes to its mission by reducing costs, improving information and compliance,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    E-Procurement at Cathay Pacific

    E-Business
    Anand Singh (PGP/19/004)

    Questions

    1.  What are the benefits of the e-procurement systems for the Airlines Purchasing
    Department?

    There were a lot of benefits expected for Airline Purchasing Department. Some of these are:

    1. Better and improved supplier and spend information


    2. A more efficient supplier sourcing process that generates value
    3. Reduced ‘Request for Proposals’ and ‘Request for Information’ costs
    4. Increased market visibility

    2. Mention the concerns of key managers in Cathay Pacific regarding the e-procurement
    system implementation?

     CXeBuy, as an e-procurement system, lacked the inventory management function


    that was previously supported by EMPACS
     Streamlining the number of suppliers – Decisions had to be made to forgo supplier
    relationships with those that were of less value in terms of the range of product
    offerings and price differentiation
     Cataloguing – Terms for maintenance of the catalogues had to be negotiated with
    suppliers and the e-marketplaces
     Incorporating the spend authorisation protocol – To ensure that the requisition-to-
    payment process could be electronically executed in an efficient and timely manner
     Business Process Reengineering of procurement practices – Continuous process
    development along with change management should be ensured
     Systems Integration – CXeBuy should be completely integrated with EMPACS and
    FMIS

    Anand Singh (PGP/19/004) Case Analysis


    3. What kind of financial metrics can be used to quantity the benefits?

    The six key business benefits from implementing the e-procurement system could be classified
    under the following heads:

    1) Time
    a. Improved information intelligence for reporting purposes
    b. Improved compliance with corporate spend policies and supplier contracts
    c. Shortened ‘req-to-cheque’ cycles
    2) Money
    a. Reduced procurement administration costs
    b. Strengthened negotiating muscle with suppliers
    3) Opportunity Cost
    a. Freeing up of purchasing staff to engage in strategic tasks

    Case already suggest using category 1) Time savings – as a financial metric, and gives a sample
    calculation in Exhibit 10 showing the reduction in transaction cost from HK$ 205.8 to HK$83.0.

    Apart from Time, two other possible metrics, from our above classification, could be:

    2) Money – amount saved from reductions in administrative costs, and the money saved by
    negotiating better deals due to the extra bargaining power.
    3) Opportunity Cost – value of the other strategic tasks that are now accomplished using staff
    freed up by CXeBuy

    4. How Cathay can used the Balanced Scorecard technique to measure the short term and
    long term benefits delivered by CXeBuy?

    The Balanced Scorecard technique could be used to look at performance of CXeBuy under the
    following target categories:

    1) Enterprise level
    2) Project level
    3) Process level

    In the short term, process level analysis would yield immediate valuations of benefits and savings in
    terms of:

    1) Financial Gains: cost reductions (staffing, inventory, etc.)

    In the long term, project and enterprise level analysis of the larger system, not just CXeBuy as a
    standalone – would show benefits in:

    2) User satisfaction: reduced time in routine and mundane tasks would lead to more time for
    greater control over working environment and thus better service
    3) Procurement process alignment with overall business objectives
    4) Future potential for improvements, value creation and adaptability to change

    Anand Singh (PGP/19/004) Case Analysis


    5. How can Cathay's e- Procurement strategy contribute to its mission?

    Cathay’s e- Procurement manages, thanks to the web, to enable the procurement of goods and
    services for five of the airline spend categories (in-flight service, cargo, information technology,
    and marketing and office supplies).

    Indeed, through Cathay’s e-Procurement strategy and valuation we can identify six keys business
    benefits that show they how contribute to its mission:
    • Reduced procurement administration cost
    • Improved information intelligence
    • Improved compliance with corporate spend policies and supplier contracts
    • Shortened required times to cheque cycles
    • Strengthened negotiating muscle with suppliers
    • Freeing up of purchasing staff to engage in strategic tasks

    Anand Singh (PGP/19/004) Case Analysis

    You might also like