UPS Logistics to oversee Ford’s vehicle-delivery chain

DEARBORN, Mich. (Feb. 2, 2000) — Ford Motor Company and the logistics division of United Parcel Service have formed a strategic alliance to slash by up to 40% the time required to deliver vehicles from Ford plants to dealers and customers.

The alliance will merge the proven ability of UPS Logistics Group with Ford’s automotive expertise to orchestrate the delivery of Ford, Lincoln, and Mercury cars and trucks in the United States, Canada, and Mexico.

The alliance will reengineer the Ford transportation network of rail and haulaway carriers to optimize speed, precision and reliability, said Frank Taylor, the automaker’s vice president of material, planning, and logistics.

UPS Logistics will manage the supply chain reorganization, which is expected to reduce vehicle transportation costs and create more reliable delivery schedules.

The alliance also will provide web-based information systems that allow Ford and its dealers to track individual vehicle status from production through final delivery. Eventually the tracking tool will be extended to customers. “Ford customers who shop on-line for cars and trucks will be delighted to learn that they soon will be able to use the web to track their vehicle delivery as well,” said Taylor.

The network will be launched in phases beginning in March. The first phase will focus on the western and southwestern regions of the United States, then expand throughout the U.S., as well as Canada and Mexico.

The network is expected to be fully operational in 2001, the companies said. Dealer on-line systems are expected to be complete later this year, with consumer systems on-line soon after.