Ford to Phase Out $200 Million Web-based Purchasing System - Good Try Lads

DETROIT, Aug 16, 2004; Reuters reported that Ford Motor Co. said on Monday it was phasing out an Internet-based purchasing software system after four years of trying to develop and integrate it with the automaker's existing systems.

"We are going back to the proven legacy systems that are still in place," said Ford spokeswoman Joan Witte. "We made a business decision."

Witte declined to reveal the amount Ford invested in purchasing and developing the software called eVEREST, which has been used to manage Ford's business with automotive suppliers including purchases and payments.

Ford spent over $200 million on the project, weekly trade publication Automotive News said on Monday, quoting sources familiar with the project. It also said auto suppliers had complained the software was slow and flawed.

Witte, however, said feedback from suppliers was not the only reason for scrapping eVEREST, which was provided by Oracle Corp. in 2000.

"There were many factors involved in our decision," Witte said, but she did not give details.

Oracle spokeswoman Karen Tillman said the software firm continues to support Ford on its technology projects.

"Given our desire to honor a non-disclosure agreement in effect, it would be inappropriate for Oracle to comment on any specifics," Tillman said, referring to the eVEREST system.

About 300 to 350 people working on the eVEREST project will be reassigned to other technology projects, Witte said.