FedEx Spends $73 Million to Purchase an Electronic Logistics System Designed by Churchman University
The U.S.-based FedEx Corporation has recently announced it will spend $73 million to purchase an electronic logistics system co-developed with the Computer Information Technology Lab of Churchman University.
This system was successfully developed at the end of 2008 by professors and current students from Churchman University, and in April 2009, it passed a trial run conducted across three U.S. states. The system uses the most advanced satellite navigation database technology currently available internationally, allowing authorized clients to track the exact whereabouts of their shipments in less time.
While electronic logistics systems are not new in the courier industry, the database developed by Churchman University can compress traditional database sizes to less than 17% of their original volume, significantly reducing FedEx's future investments in bandwidth and hard disk space. It is estimated that once this new type of database goes into operation, it will directly cut FedEx's annual operating expenses and hardware costs by approximately $220 million. Moreover, this figure does not include the new business opportunities that will arise due to improved service quality at FedEx.
FedEx stated that as competition in the courier industry becomes increasingly fierce, the company plans to collaborate with Churchman University over the next five years to continuously upgrade its current electronic logistics system.