Ford Motor Company and Penske Logistics Case Study

1265 Words Feb 21st, 2013 6 Pages
FORD MOTOR COMPANY AND PENSKE LOGISTICS CASE STUDY

KEVIN BRAVO

EMBRY RIDDLE AERONAUTICAL UNIVERSITY

MARCH 4, 2012

Abstract
In this case study I would highlight the importance of Penske Logistics to Ford Motor Company, one of the world’s largest automotive manufacturers. Penske has a good reputation and are highly valuable in the logistics field. They are very famous in using a process that identifies and removes errors efficiently with a set of tools that increases productivity in the business called Six Sigma. Penske had many challenges to overcome like developing and implementing and operate a centralized logistics network, also streamline supplier and carrier operations to improve performance and accountability, and finally
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Penske implemented new and advance information technology solutions, but one that caught my attention was the fact that drivers will now be provided with PDA scanners and an electronic driver log to process the claims faster and order receipts. Also every truck need to have satellite communications and engine monitoring systems for load tracking, delivery of individual parts is also scanned by using new innovative cross-dock scanners. With all of this new features developed and the centralized approach working the financial part needed to be clear as mud. Penske would provide drivers with an easy and simple set of procedures for accounting purposes. With the new Freight Billing System Ford can now tell which plant is producing less or which one is producing the most. 700 inbound and 500 outbound trailers move in and out Ford ODCs per day with most loads carrying at 95% capacity, unused docking space is being extremely high resulting in a 15% inventory reduction. The supply chain with the suppliers is now better and the new Carrier Rating System has put carriers in a dark spot by now increasing their service and getting better everyday so that they don’t get a low carrier rating for future bids or future references for other Motor

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