Ford optimizes inbound supply chain by managing orders through AX4
Ford, in partnership with Siemens, deployed the AX4 platform to optimize its global supply chain. With this solution, the company cut response times, increased operational efficiency by 30%, and improved visibility and alignment across teams. Ford now operates with more agile, effective management, ready for the challenges ahead.
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Ford Europe supports more than 3,300 dealerships across over 100 markets from its three spare parts centers in Germany, Great Britain, and Spain. With 230,000 parts in the European spare parts program, 1,600 suppliers, 24 regional carriers, one material synchronization center, and 43 inbound consolidation centers worldwide, precise procurement coordination is required.
Here, the AX4 platform acts as the engine of an automated supply chain running from the supplier to one of the spare parts warehouses. The solution makes the internal supply chain transparent for all parties and delivers reliable, predictable procurement of spare parts.
The challenge
Ford's spare parts procurement process relies on well-orchestrated logistics. That is because, for customers, fast procurement is the same as service quality. The challenge lies in organizing the numerous interfaces and the multiple communication channels with suppliers across a global network, accelerating processes through automation and ensuring end-to-end transparency, knowing, for example, the exact number of parts available in stock. The goal is to use AX4 to map both physical and digital processes – from the supplier to storage.
"A transparent, well-functioning supply chain is an absolute must for logistics spare parts replenishment. The cloud-based AX4 logistics platform delivers complete optimization of spare parts procurement and easy integration of all essential partners."— Paul Dennemarck, Transport, Planning and Process Optimization Manager, FordWerke GmbH
The solution
AX4 integrates all parties into a single network, bringing transparency to the parts procurement process, including all of its various transport options. On the platform, existing shipment request data and ASNs (advanced shipping notices) can be used to create barcodes. This ensures that the package is routed correctly along the transport chain, with everything digitized automatically at Ford's spare parts warehouse. In addition, Ford gains a "control tower" with which it can monitor all processes and zoom in on any specific location if needed.
AX4 also processes shipping and tracking data that allow Ford to monitor transport at all times, and the supply chain event management feature raises an alert if any deviation or delay occurs.
The results
Ford has a network of around 1,200 AX4 users, serving more than 162,000 users who register spare parts shipments annually. The cloud-based platform offers 24-hour availability, which in turn improves communication for all parties along the supply chain. Carriers are promptly notified of shipping requests, which improves the pickup process.
Transparency across the supply chain and the ability to track goods at any point in the transport chain have led to reduced delivery times. Ford's third-party packers and parts warehouses have the opportunity to plan and prepare better for inbound shipments. Deployments are quick and easy, with no need for complex integration projects, since a single mouse click is all it takes to give supply chain participants access to the solution.
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