Penske & Ford: Entering a New Century of Automotive Achievement

By February 2001, Penske had completely transitioned Ford's logistics operations to a centralized network design. More than 700 inbound and 500 outbound trailers now move to and from Ford's ODCs per day, with most loads carrying at 95 percent capacity. Shipments are consolidated at the ODC and previously unused cross-docking space is now in high demand. Fourteen million pounds of freight are cross-docked each day, resulting in an inventory reduction of 15 percent.

Suppliers and carriers currently operate under a single set of transportation and distribution procedures, enabling better service throughout the supply chain. The level of accountability established with Penske's Carrier Rating System has enabled Ford to rid its distribution network of costly, ineffective carriers.

With uniform technologies, ODCs are able to monitor shipments, identify inefficiencies and address materials handling issues in a real-time environment. Furthermore, logistics costs now enter the supply chain immediately. This allows Ford to see overall supply chain costs and per plant allocations at any given point in time.

Penske met its logistics program objectives six months ahead of schedule - a testament to the joint-team approach established between Penske and Ford. More importantly, as Ford continues to evolve, the Penske Logistics Center provides Ford with a single point of contact for all logistics operations.

"Having a single point of contact delivers more than cost benefits. Penske allows us to clearly understand how our logistics operations impact the entire company. From the assembly line to the end-consumer, the efficiencies provided by Penske are realized at virtually every level throughout Ford."
Grant Belanger, director of material planning and logistics, Ford Motor Company

Penske continues to deliver significant cost savings to Ford by continuous process improvement. In 2003, to keep pace with assembly plant requirements, Penske closed six of its ODCs due to a change in shipping frequency strategy. With four ODCs operating at full capacity, Penske once again streamlined its logistics strategy to reduce costs for Ford.

In April 2004, Ford honored Penske with two Q1 awards, its highest recognition of superior supplier quality. Today, with a century of automotive achievement behind them, Ford and Penske continue to redefine the highest standards for logistics and operational efficiency..

For more information on Penske Logistics solutions, contact us.

Ford Case Study
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Ford Case Study
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Print version (pdf)

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	- Ford Motor Company - General Motors de Mexico - International Truck & Engine Corporation - Knoll Incorporated (Case Study 1) - Knoll Incorporated (Case Study 2) - Mission Foods - Whirlpool Corporation