ford logistics--Getting Started

Today, Ford owns and produces automobiles under eight major brands: Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin and Volvo.  In 2003, more than 6.7 million Ford-manufactured automobiles were purchased throughout the world.  As a result, Ford maintains one of the auto industry's most complex manufacturing, transportation and distribution networks.

Penske Logistics began its relationship with Ford in 1996 as lead logistics provider (LLP) for Ford's assembly plant in Norfolk, Virginia.  At the time, each of Ford's 20 North American assembly plants managed its own logistics operations.  A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation.

In 1999, Ford conducted studies to determine the benefits of transitioning the company's decentralized logistic operations to a centralized approach.  The decision was quickly apparent - centralization of the company's logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs.

Ford selected Penske as its North American LLP in July 1999.  Under the contract, Penske would centralize and manage all inbound materials handling for 19 assembly plants and seven stamping plants.