Logistics Management Case Study: Ford Motor Company

Background

Ford Motor Company is an American multinational motor company, known to be one among the largest manufactures of automotives. Penske Logistics is a leading logistics provider (LLP) that has partnered with Ford to implement its certain Six Sigma initiatives. Penske is a bundle of quality team members who are highly skilled in the field of Six Sigma. They have contributed largely to organize the operations at Ford and streamline them. This has also helped in the creation of a centralized logistics network and maintenance of the same. The areas that have been covered include reduction of inbound carrier inconsistencies, decrease in the shipment overages and elimination of un-required premium expenses that have finally resulted in cost

They are listed as follows:

 Development, Implementation and Operation of a centralized logistics network for Ford: It was necessary to come forward with a centralized network for logistics management at Ford for all of its plants including assembly and stamping. This was the primary concern that Ford had appointed Penske for its logistics management.

 Streamlining the supplier and carrier operations for improved performance and accountability: The second challenge that had to be faced by Penske Logistics was to enhance the actions and show results. This would result in better accountability. In order for the same, it was necessary to streamline the operations between the supplier and the carrier.

 Provision of real time supply chain and financial visibility: Apart from increased performance levels, it was also essential to improve the financial visibility. This would help to understand the actual results because of the implementation of a centralised logistics network. This was a tedious task on hand and needed to be worked upon. Also there was a need to implement a real time supply chain and its existence was of great importance to understand the results

After a lot of research and analysis, the following solutions could be possible to be implemented by Penske Logistics at Ford:

 Establishment of Origin Distribution Centres: Penske Logistics could establish Origin Distribution Centres which would help to provide summarised shipments to various plants of Ford Motor Company. A distribution centre would help in the temporary storage of the goods and would provide the same to a plant when and where required depending on the location. This can lead to most of the trailers running with close to full capacity and has also helped in reducing plant inventory.

 Training on procedures and technologies: It could a huge step taken by Penske Logistics towards achieving its goals. If efficient training is provided to a major section of the suppliers with respect to the procedures for logistics and the technology used for the same, it could help in enhancing the performance. Also, the systems would be more organised and transparent. Systems need to be developed to measure the carrier performance. The same can be done by development of Carrier Rating Systems and strict carrier