Cisco Signs Pact With Auto-Xchange, a Ford/Oracle Joint Venture
10 February 2000
Cisco Signs Pact With Auto-Xchange, a Ford/Oracle Joint Venture; Becomes Equity Partner
First Online Auto Exchange Auction Exceeds $75 Million
DEARBORN, Mich., REDWOOD SHORES, Calif. and SAN JOSE, Calif., Feb. 9
-- ( http://www.oracle.com/tellmemore/?135719 ) Ford Motor
Company , Oracle Corporation and
Cisco Systems, Inc. announced today that Cisco will become an
equity partner in auto-xchange, an online automotive exchange, to handle
Ford's $300 billion automotive supply chain with suppliers, dealers and
consumers. In this agreement, Cisco will bring secure network management to
auto-xchange.
Last week, auto-xchange conducted its first online auction for production
parts of Ford vehicles. The auction volume exceeded $75 million.
Auto-xchange is the only automotive exchange to provide the combined
capability of business-to-business reverse auctioning, Internet procurement
and supply chain management.
In addition to handling Ford's transaction volume, auto-xchange is
actively recruiting other automotive companies to utilize this massive online
business transaction environment to gain purchasing efficiency and economy of
scale.
For its part, Cisco will provide networking products in a quick start kit
for Ford's 30,000 suppliers. The kit will enable suppliers to gain immediate,
secure access to auto-xchange and begin transacting business.
Cisco will also bring expertise gained by implementing its own
multi-billion-dollar Internet supply chain. For the past six years, Cisco has
worked aggressively to develop a collaborative relationship for manufacturing,
product development and order management with its own suppliers. As a result
production lead times have been cut in half and 60 percent of its product
volume is now shipped through direct fulfillment.
The combination of Oracle and Cisco technology will provide suppliers with
a fast, secure, high volume transaction environment for e-commerce.
"In today's Internet economy, businesses are working together to redefine
competitive advantage and create value for their customers and partners,"
Cisco President and CEO John Chambers said. "Cisco has pioneered 'virtual
manufacturing,' which delivers almost $500 million in financial contribution
and cuts customer product lead times in half. Through our partnership with
Oracle and Ford, we will use Internet solutions to help revolutionize the
supply chain process."
"We're pleased to welcome Cisco as a technology and equity partner in
auto-xchange. We expect exchanges to become the business model of the future
across all industries. Oracle is the only software that can handle Internet
procurement, on-line auctioning, full supply-chain management, real-time
inventory and resource optimization for increased efficiency, economy and
faster time to market," said Ray Lane, president and COO, Oracle Corp. "The
technology combination of Oracle and Cisco is recognized by our joint category
leadership in e-business."
"We are pleased with Cisco's commitment and level of support to the joint
venture," said Jac Nasser, president and CEO, Ford Motor Company. "Cisco is
to auto-xchange what the assembly line was to the automotive industry. The
combination of Cisco and Oracle provides an industrial strength Internet
Infrastructure."
About auto-xchange
The Ford/Oracle venture announced in November 1999 brings the automotive
community together via the Internet. It is an open network where the entire
automotive supply chain will benefit from online procurement and trading,
real-time supply chain management and collaborative product innovation.
About Ford Motor Company
Ford Motor Company is the world's largest producer of trucks and the
second-largest producer of cars and trucks combined, marketing and selling
approximately 7 million vehicles globally through its seven brands last year.
Ford Motor Company employs approximately 345,000 people in plants, offices and
laboratories to serve consumers in more than 200 countries and territories.
Ford also is one of the largest providers of financial services worldwide
through 2,400 branches in 33 countries.
About Oracle Corporation
Oracle Corporation is the world's leading supplier of software for
information management, and the world's second largest independent software
company. With annual revenues of more than $9.3 billion, the company offers
its database, tools and application products, along with related consulting,
education and support services, in more than 145 countries around the world.
About Cisco Systems
Cisco Systems, Inc. (CSCO) is the worldwide leader in networking for the
Internet.
Trademarks
Oracle is a trademark or registered trademark of Oracle Corporation.
Other names may be trademarks of their respective owners.