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Ford and UPS Logistics to Slash Vehicle Delivery Times

2 February 2000

Ford and UPS Logistics to Slash Vehicle Delivery Times

    DEARBORN, Mich., Feb. 2 -- Ford Motor Company and
UPS Logistics Group, a subsidiary of United Parcel Service, have formed a
strategic alliance to reduce by up to 40 percent the time required to deliver
vehicles from Ford plants to dealers and customers.  This first-of-its-kind
alliance is an example of Ford's leadership role in executing innovative
e-commerce and supply chain management strategies.
    The alliance will merge the proven ability of UPS Logistics Group with
Ford's automotive expertise to orchestrate the delivery of Ford, Lincoln and
Mercury cars and trucks in the United States, Canada and Mexico.  The alliance
will reengineer the Ford transportation network of rail and haulaway carriers
to optimize speed, precision and reliability.
    "We are coupling lightening-speed, web-based technologies with leading-
edge distribution network design and execution to deliver cars and trucks to
customers faster," said Frank Taylor, vice president of material, planning and
logistics, Ford Motor Company.
    "We are reengineering the Ford delivery network -- introducing new
management practices, eliminating bottlenecks, minimizing delays, and
providing information technology systems that greatly improve the monitoring
of vehicles across the entire journey to the customer," said Dan DiMaggio,
CEO, UPS Logistics Group.  "When the optimized network is complete, Ford
customers can expect the same on-time delivery reliability they get from UPS."
    The alliance also will provide web-based information systems that allow
Ford and its dealers to track individual vehicle status from production
through final delivery.
    "This alliance is another example of the golden opportunity that the
Internet represents for Ford Motor Company and its dealers to work together to
achieve customer benefits we couldn't imagine just a few years ago," said
Jerry Reynolds, Ford Dealer Council chairman and general manager of Prestige
Ford in Garland, Texas.  "This is a win-win-win for Ford, for dealers and most
importantly, for new vehicle buyers."
    Eventually the tracking tool will be extended to customers.  "Ford
customers who shop on-line for cars and trucks will be delighted to learn that
they soon will be able to use the web to track their vehicle delivery as
well," said Taylor.
    Taylor added the alliance will result in many other benefits, including:
    *  significant reduction in Ford's multi-billion dollar vehicle
       transportation, distribution and inventory costs
    *  predictable and precise delivery times for the convenience of both
       dealers and customers.

    The network will be launched in phases beginning in March.  The first
phase will focus on the western and southwestern regions of the United States,
then expand throughout the U.S., as well as Canada and Mexico.
    The network is expected to be fully operational in 2001.  Dealer on-line
systems are expected to be complete later this year, with consumer systems
on-line soon after.
    Taylor concluded, "Our #1 goal is to satisfy the customer and this is a
significant piece of the customer satisfaction equation."
    The UPS Logistics Group, a subsidiary of United Parcel Service, provides a
full spectrum of global supply chain management services.  Based in Atlanta,
the company offers these key services:  Global supply chain network
management, transportation management services, supply chain technologies,
service parts logistics, and consulting.  Information is available at
http://www.upslogistics.com .