READING, Pa., May 11, 2012 – The European Logistics Association (ELA) honored Penske Logistics and Ford Motor Company with this year's European Award for Logistics Excellence 2012 award for the innovative Network Integrator concept developed by the two companies.
The winning case study submission is a joint project of Ford's European Customer Service Division (FCSD) and Penske Logistics to optimize spare-parts supply chain enabling collaboration for multiple car brands across Europe. The award ceremony took place in Kiev, Ukraine, yesterday.
The Network Integrator concept has been a success story related to spare-parts logistics optimization for many years. Its application has led to savings in transportation of more than 25 million truck kilometers and a reduction of more than 10,000 tons of CO2 emissions each year, based on an assumption of 750,000 shipments annually, with further potential in the years ahead.
The team behind the concept consists of logistics experts from Ford and Penske. Together, they have designed flexible logistics solutions for both inbound and outbound shipments by integrating the supply chains of participating brands to create a collaborative logistics network.
"Simply excellent," were the words the ELA's panel of judges used to describe the project. "Redesigning a spare parts supply chain is not an easy task, but combining this with the acquisition of other brands to be included in the logistics network in Europe is a true challenge. This supply chain is particularly complex, due to the high number of unique items to be managed, the heterogeneity of those items, and the extremely short lead times that dealers require. The industry-wide cooperation makes the Network Integrator a state of the art example. This excellent concept produces excellent results in cost reduction, increased customer service and advantages for the planet through deep collaboration. On top of that it delivers several exemplary models for the future."
Spare parts logistics has become more challenging for the automotive industry due to the increasing number of spare parts as a consequence of increased vehicle complexity. Ford collaborated with Penske Logistics and co-developed the Network Integrator concept into a best-in-industry model in collaboration.
"The Network Integrator concept is part of Ford's holistic efforts to further reduce the environmental footprint of our products along their entire life-cycle, including the supply chain," said Raymond Damerow, Director Parts Supply and Logistics, Ford European Customer Sales Division. "Our goal is to continue expanding the concept and encourage other companies of the automotive industry to join the Network, and further leverage economies of scale – to the benefit of each partner participating in the Network and to the environment. Last but not least, the customer benefits as well, as we can provide the highest service level through a stable network."
"Ford and Penske have worked together globally for years to develop creative and efficient supply chain solutions," said Brian Ruprich, Europe's Managing Director for Penske Logistics. "The Network Integrator model has evolved into a solid solution that is delivering results and that has exceeded expectations for some time now. It also proves smart solutions can contribute to a greener supply chain at lower costs while maintaining high services level. We are sincerely honored to receive this award, but it would not have been possible without the close, long-term collaboration with the Ford team."
Ford of Europe is responsible for producing, selling and servicing Ford brand vehicles in 51 individual markets and employs approximately 66,000 employees. In addition to Ford Motor Credit Company, Ford of Europe operations include Ford Customer Service Division and 22 manufacturing facilities, including joint ventures. The first Ford cars were shipped to Europe in 1903 – the same year Ford Motor Company was founded. European production started in 1911.
Penske Logistics delivers value through design, planning and execution in transportation, warehousing, and international freight forwarding and carrier management. In Europe, the company provides services to industries including diversified industrial, automotive and truck, consumer and healthcare in this region. In Europe, Penske Logistics manages over 32,000 square meters of warehouse and stock turnaround facilities in six locations across the continent. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to major industrial and consumer companies throughout the world. To learn more about Penske's products and services please visit www.PenskeLogistics.com/europe/.