Logistics business: Ford re-ups with UPS for logistics services contract
Jeff Berman, Group News Editor -- Logistics Management, 7/1/2009
ATLANTA—Earlier this week, UPS said it has extended its contract with Ford Motor Company and will continue to provide logistics services to Ford for the delivery of new cars to dealers.
Financial terms of the deal were not disclosed, but UPS officials told LM the contract will be extended through 2012.
UPS officials said that the company will assist Ford in managing its North American outbound finished vehicle distribution network and will ship Ford’s finished vehicles from assembly plants to U.S-, Canada-. and Mexico-based dealerships. UPS said it will provide Ford with on-site operations at key Ford distribution points.
When asked for a figure regarding the total number of Ford’s distribution points at which UPS will provide services, UPS Spokesman Michael French said thatinformation is proprietary to Ford Motor Company and cannot be disclosed.
Other services provided by UPS for Ford include: carrier management, transportation network oversight, and contingency support. UPS also plays a large role in logistics-related problem solving and makes recommendations to improve processes and efficiency for Ford.
“UPS services all North American dealerships based upon a distribution network we designed and manage for all of Ford's North American vehicle assembly operations,” said French.
UPS has been working with Ford since 2000, according to French. He added that this week’s news regarding the contract extension was the result of Ford’s satisfaction with UPS’s logistics services for finished automobiles.
UPS has and continues to provide vehicle transportation management services to more than ten companies requiring vehicle transportation management services on a domestic and international basis, said French.
“While the nation’s automotive industry is currently undergoing a dramatic upheaval, UPS’s finished vehicle logistics model effectively reduces costs for manufacturers such as Ford,” said Paul Hargadon, general manager of UPS’s Automotive Industry Solutions Group, in a statement. “UPS has…provided improved transit times [for Ford] while lowering logistics costs.”
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