Textron Awarded First-of-Its-Kind VMI Fastener Contract with Ford
26 October 1999
Textron Awarded First-of-Its-Kind VMI Fastener Contract with Ford; Contract Provides for Full Fastener Needs on Ford Fiesta and Puma Models in Europe
PROVIDENCE, R.I.--Oct. 26, 1999--Textron Fastening Systems, a unit of Textron Inc., announced today that it has been awarded a contract for the vendor managed inventory (VMI) of engineered fasteners and hardware for the Ford Motor Company's Fiesta and Puma lines. The VMI contract for these car models produced at Ford's plants in Dagenham (United Kingdom) and Cologne (Germany) involves the procurement and supply of Ford's fastener inventory, and includes services such as optimized distribution, just-in-time delivery and value-added fastener management systems."This ground-breaking contract with Ford is an example of how we're driving organic growth through the development of innovative products and solutions for our customers around the world," said Textron Chairman and Chief Executive Officer Lewis B. Campbell.
While VMI has been widely used in the automotive industry for such products as seats, tires, engines, instrument panels and other components, Textron's contract with Ford marks the first time an automotive manufacturer in Europe or North America has undertaken a full VMI program for fastening systems. Textron's VMI contract with Ford covers over 520 part numbers and procurement from approximately 50 suppliers of fasteners and assemblies, including Textron and non-Textron companies. It was won against bids from four other fastener manufacturers.
"This contract is a value-adding solution for Ford's fastener supply and management," said Textron Fastening Systems President Randy Smith. "It provides increased efficiency and cost reductions throughout the entire production process from improved procurement and distribution to reduced fastener inventories at the actual assembly line," he added.
Mike Drake, sales director of Textron Fastening Systems in the United Kingdom added, "The VMI program with Ford is much more than a logistics solution. Textron Fastening Systems is taking full responsibility for all aspects relating to fastening at Ford's plants in the United Kingdom and Germany for the production of the Fiesta and Puma. This includes full technical and engineering support."
Based on Ford's build projections, Textron Fastening Systems will consolidate its own and other manufacturers' product at logistics centers close to both plants ready for shipment. It will also take responsibility for ensuring all parts meet Ford's high standards for quality. Textron engineers will be working alongside their counterparts at Ford to improve and design new assembly solutions for current requirements as well as new projects. The contract is expected to run the life of the current Fiesta and Puma models.
With annualized revenues of over $2 billion, Textron Fastening Systems is the global leader in engineered fastening systems and assemblies serving the aerospace, automotive, computer, consumer, construction, industrial, medical, telecommunications, and inventory management industries. A part of Textron's Industrial segment, Textron Fastening Systems has over 100 locations in 19 countries, and serves customers in over 40 countries worldwide.
Textron Inc. is a $11 billion, global, multi-industry company with market-leading businesses in Aircraft, Automotive, Industrial and Finance. Textron has a workforce of over 65,000 employees and major manufacturing facilities in 27 countries. Textron is among Fortune magazine's "Global Most Admired Companies." Additional information is available at www.textron.com.