Ford Motor Company

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Ford Motor Company

Ford Motor Co. Benefits from Service Parts Software from SAP Mary Ann Tindall Steve Balaj Manager, Business Technology Renewal IT Manager, Business Technology

Slide 2

Confidential

SAPPHIRE 08 OR3349

Ford Motor Company

Ford Motor Co. Benefits from Service Parts Software from SAP Mary Ann Tindall Steve Balaj Manager, Business Technology Renewal IT Manager, Business Technology

Ford Motor Company

Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles in 200 markets across six continents. With about 245,000 employees and about 100 plants worldwide, the company’s core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo and Mazda.

The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.

Ford Global SPM Implemention – Key Messages Ford went live with SPP on November 5, 2007... Why Ford is implementing SAP’s SPM Solution Implementation and launch strategy

Go-live Experiences Value Drivers

e on Liv . 5 Nov

SAPPHIRE 08 OR3349 Slide 5

Ford Parts Supply & Logistics (PS&L) Overview

Scope of Ford PS&L Business
U.S. Dealers Serviced Order Line Volume Suppliers Managed Part Numbers (SKUs) Number of Depots Number of Employees ~5,200 ~ 60 Million ~2,000 450,000 38 ~3,500 Europe ~2,500 ~30 Million ~1,500 360,000 28 ~2,000

SAPPHIRE 08 OR3349 Slide 6

PS&L Business Technology Renewal Transformation Strategy
Customer Service Satisfaction Growth Maximization Cost Minimization i ne s Bus

PRO PRO C CES S ESS E ES S

NETWORK NETWORK

y olog chn s Te

1999 – Ongoing
SAPPHIRE 08 OR3349 Slide 7

2001 – 2004

2006 – 2012+

Why Business Transformation? Ford Supply Chain Used “Push” Approach

Suppliers

Packagers Warehouses Distributors

Dealers/ Retailers

Consumers

Consumer Oriented Approach

Consumers

Dealers/ Retailers

Packagers Warehouses Distributors

Suppliers

SAPPHIRE 08 OR3349 Slide 8

Why Technology Transformation?

SAPPHIRE 08 OR3349 Slide 9

The Solution Strategy: Fully Integrated Solution
Concept: ~ 80% common processes/ technology Leverage Ford and Cat Logistics volumes Commercialize system software

Intellectual Property Know-how Capability Scalability

Benefits: Lower development costs International capabilities Natural (planned) technology upgrade path Shared Risks between Cat Logistics, Ford, and SAP The Result: State of the Art Service Parts Management Solution Across Multiple Industries Best-In-Class Logistics Performance Increased Customer Satisfaction Cost Reduction SAPPHIRE 08 OR3349 Slide 10

Solution Landscape
CRM (Customer Relationship Mgt)
Legacy System
- Pricing
e-commerce Master Data Rebates GTS

Sales

Billing

Service

Marketing

Interaction Center

Portal

Legacy System
- Contracts

SCM (Supply Chain Mgt) Warehouse Mgmt Engine
Legacy System
- Purchasing

Packaging Engineering

APO
Legacy System
- Transportation

Service Parts Planning Engine gATP Inventory Collaboration Hub Master Data Portal

BI

Legacy System
- Financials
Delivery PUR/IV TPDS

ERP (Enterprise Resource Planning)
Master Data Inventory Mngt FIN QM EH&S Portal

Legacy System
EDI Converter for Industry/customer specific formats

IDOC

CIF

XI

Connectivity Connectivity

XML

BDOC

SAPPHIRE 08 OR3349 Slide 11

Implementation Approach – Supply Chain Mgmt.
Capture/Manage Demand Forecasting

Tactical Planning

MM Packaging

Master Data

Financials

Inventory Planning Supply Planning Deployment

Operational Planning

Delivery Processing Supplier Confirmations / Monitoring & Analytics

Europe Phased Approach •Full functionality for limited parts •All part activation with full supplier ramp-up U.S. Phased Approach •Tactical Planning for Frames •Tactical Planning...
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