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Ford Revamps Exclusive Web Site for Suppliers

12 October 1999

Ford Revamps Exclusive Web Site for Suppliers
    DEARBORN, Mich., Oct. 12 -- Ford Motor Company has
significantly revamped its exclusive web site for suppliers as part of a
supply chain e-business strategy that will change the way Ford and its
suppliers do business and will link suppliers more closely to the automaker's
customers.
    Launched in 1997, the Ford Supplier Network (FSN) was recently converted
to a portal, allowing suppliers to customize the initial screen to display the
information most pertinent to their business needs.  In addition, the site was
reorganized, adding a "public" section of information available to all
suppliers, increasing the content, and changing the navigation and look and
feel.  Visitors to the site -- accessible on the world wide web at
http://fsn.ford.com -- will need an ID and password to get beyond basic
information on the first few pages.
    "This is all about speed.  The automotive industry is moving at a
lightning pace and customers are demanding new features -- instantly," said
Carlos Mazzorin, Group Vice President of Purchasing and Ford of Mexico.  "This
transformational tool will become the way we have to operate in this
environment.  The internet is making other forms of communication obsolete,
like the telephone did to the telegraph."
    The new site contains both communications and transactional information,
such as shipping schedules, quality metrics, parts release schedules, and
vehicle program information.  In addition, the site includes links to the C3P
engineering program, warranty systems data, production planning and logistics.
The site will eventually include quotes and bids, purchase orders and
engineering changes.
    Information is supplied by a cross-functional group of departments within
Ford, including Purchasing, Product Development, Manufacturing, Ford Customer
Service Division and Quality.
    FSN is expected to benefit both Ford and its suppliers by improving
quality, speeding communication and reducing costs.  For example, Ford
currently sends nearly 2 million mailings a year to suppliers with detailed
remittance information.  By putting this information on FSN, suppliers will
receive up-to-date information instantly -- when they want it.  In addition,
FSN will contain payment information so suppliers will know the timing and the
amount of their payments.  These two projects together will save Ford more
than $1 million and allow Ford employees to use their time for more strategic
work.
    A popular feature of FSN is the ability to search for contact information
about Ford employees.  FSN also offers a searchable database of supplier
personnel.
    One of the most innovative uses of FSN is the Ford Supplier Learning
Institute (FSLI), a global virtual organization that offers comprehensive
training classes for suppliers.  FSLI course information and registration is
available through FSN.  FSLI is also an example of how all supplier
information can be consolidated and easily available in one location -- on
FSN.
    A unique aspect of FSLI is the online diagnostic tool that offers
competency assessments for suppliers and determines their training needs.  The
diagnostic tool leads suppliers through a series of customized questions,
resulting in suggested course topics and training that the supplier should
consider.
    FSN also offers another learning opportunity for suppliers -- a link to
Ford's Lean Resource Center, a comprehensive library and resource service that
provides research and other tools on lean manufacturing to suppliers.  The
Center offers seminars, case studies, and links to outside experts as part of
its online capabilities.
    About 17,000 employees of Ford's suppliers currently use FSN.  Each
supplier firm has a company security administrator that controls the access
and passwords to FSN for that company.  The site is expected to eventually
have 100,000 to 200,000 suppliers users within a few years.  About 1,100
production and 500 nonproduction supplier companies have access to FSN.