Optimising the procurement and distribution logistics of Ford spare parts

Complex parts logistics

1,625 suppliers, 3 international warehouses ("sources") and 7 national distribution warehouses ("nationals") currently ensure the supply of approximately 200,000 SKU´s for Ford vehicles in Europe.

Optimising the logistics chain

The problems in optimising the logistics chain for parts logistics of the Ford corporation can be easily defined:

Many links in the chain (suppliers, warehouse, customers), a very large assortment (approx. 120,000 items per land), stock which is difficult to plan (e.g. discontinued models), a multi-levelled procurement and distribution system, and several other causes hinder a service-orientated and profitable procurementt of the parts logistics.

Distribution Requirement Planning (DRP)

 

In order to optimise the parts logistics in Europe viaLog developed a DRP approach. Supporting this is an IT-based development which

• administers the multi-levelled procurement, warehousing and distribution system, develops and co-ordinates the procurement, ordering and supply activities of these levels as well as optimising the target-stocks or, where required, the optional optimisation of the delivery service level.

To compliment the planning, on the part of viaLog

• the procurement and distribution network was critically examined and the systems parameters were reviewed (choice of distribution channels, time slots, scheduling, etc.).

The implementation of the results and the integration in a "world wide logistics" approach are ongoing.

 

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