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Supply Chain Collaboration and Visibility Ford Aims for “Available When Promised” with CGE&Y |
| Compiled by Lothair, Written by Norbridge | |
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Company: Ford Customer Service Division (FCSD), Ford Motor Compan Scale: More than 200,000 part
numbers, 3100 suppliers, 5100 dealers, and 3500 employees
Situation: “Until now, the U.S. auto industry has pursued a service parts replenishment strategy with many large, one-size-fits-all local warehouses carrying high volumes of a broad selection of parts, which increases complexity,” said Don Johnson, Global Director, FCSD Parts Supply and Logistics (PS&L). The new segmented network serves the same day/next day repair requirements, and those that are planned and/or more serious requiring second-day delivery. Process: Ford is restructuring a parts delivery network around a customer-centric model. This design will be able to improve Order Response Time (ORT) by segmenting parts for timely repairs at the dealership. “This design strategy is unique because it utilizes decentralization and centralization of inventory simultaneously, to yield optimal service and cost savings,” said Kent O'Hara, Ford Project Leader. The collaborative efforts of Ford, Cap Gemini Ernst & Young (CGE&Y), and others assisted Ford in developing segmentation methodologies. FCSD’s new business model includes three warehouse categories:
Results: Ford aims to achieve higher fill,
faster ORTs and lower costs while delivering higher customer satisfaction
from this network redesign. This should lead to: Best-in-Class Service
Satisfaction Examples:
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