Time Is Money – To Market – Ford And The Ups Logistics Group

Time Is Money – To Market – Ford And The Ups Logistics Group – Brief Article

FOUR DAYS MAY NOT SEEM LIKE MUCH IN THE GRAND SCHEME OF THINGS, BUT FOR THE ONE-YEAR-OLD ALLIANCE BETWEEN FORD AND THE UPS LOGISTICS GROUP, FOUR DAYS IS A VAST AMOUNT OF TIME. THIS IS BECAUSE IT REPRESENTS A 26% REDUCTION IN THE TIME NECESSARY TO SHIP A VEHICLE FROM A PLANT TO A DEALERSHIP. AND THAT REDUCTION IN THE DELIVERY CYCLE HAS BROUGHT FORD A $1.0 BILLION REDUCTION IN VEHICLE INVENTORY, AND MORE THAN $125 MILLION IN CARRTING COST ANNUAL SAVINGS. UPS AUTOLOGISTICS, THE BUSINESS UNIT FORMED TO MANAGE THIS PROJECT, ULTIMATELY WILL OVERSEE THE DISTRIBUTION NETWORK THAT CURRENTLY SERVES 21 FORD ASSEMBLY PLANTS, FOUR RAIL CENTERS, 55 DESTINATION RAMPS, AND 6,000 FORD, LINCOLN, AND MERCURY DEALERS IN NORTH AMERICA. THE NETWORK IS BASED ON A CLASSIC HUB-AND-SPOKE SYSTEM THAT USES BOTH GROUND AND RAIL TRANSPORT, AND RELIES ON AN ADVISORY BOARD COMPRISED OF DEALER COUNCIL MEMBERS TO PROVIDE QUALITY FEEDBACK.

THE NETWORK LOOKS AT VEHICLE DEMAND, THEN ASSIGNS PRODUCTION VOLUMES FROM EACH OF THE PLANTS TO THE APPROPRIATE RAIL AND HAUL-AWAY CARRIERS. THIS INFORMATION IS USED TO DETERMINE THE OPTIMUM SOURCING LANES, LOADS, AND DELIVERY SCHEDULES FOR EACH DEALER. THE RESULTS ARE FEWER BOTTLENECKS, FEWER VEHICLES IN TRANSIT, AND LOWER INVENTORY CARRYING COSTS. BY-PRODUCTS OP THIS ADVANCE PLANNING ARE LESS DAMADE TO VEHICLES AND FIRM DELIVERY GATES TO THE TO TOMER. IN ADDITION, UPS AUTOLOGISTICS CAN TRACK A VEHICLE THROUGH THE DELIVERY PROCESS OVER THE INTERNET.

THE DELIVERY SCHEME IS SIX MONTHS AHEAD OF SCHEDULE, AND HAS A GOAL OF REDUCING DELIVERY TIME BY A TOTAL OF 40%. BY 2003, UPS WANTS THE SERVICE TO HAVE AN 8-DAY MAXIMUM DELIVERY TIME IN NORTH AMERICA, WITH 95% OP VEHICLES DELIVERED WITHIN A DAY OF ITS SCHEDULED DELIVERY DATE.

COPYRIGHT 2001 Gardner Publications, Inc.

COPYRIGHT 2001 Gale Group