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European Award for Logistics Excellence 2012

Ford Werke GmbH and Penske Logistics win the European Award for Logistics Excellence 2012

25 Million Truck Kilometers Avoided Per Year on European Roads

Enabled by European Logistics Award-winning Concept of Ford and Penske

  • Innovative: ‘Network Integrator’ logistics concept offers one distribution platform for many automotive manufacturers aimed at optimizing the supply chain
  • Efficient: Transport avoidance through intelligent resource utilization
  • Green: More than 10,000 tons or 17 per cent of CO2 reduction per year achieved, based on an assumption of 750,000 shipments annually
  • Customer benefit: Highest service level with reduced CO2 backpack

The European Logistics Association (ELA) honored Penske Logistics and Ford Motor Company with this year’s European Award for Logistics Excellence 2012 award for the innovative Network Integrator concept developed by the two companies. The winning case study submission is a joint project of Ford’s European Customer Service Division (FCSD) and Penske Logistics to optimize spare-parts supply chain enabling collaboration for multiple car brands across Europe. The award ceremony today took place in Kiev, Ukraine.

The Network Integrator concept has been a success story on spare-parts logistics optimization for many years. It’s application has led to savings in transportation of more than 25 million truck kilometers* and a reduction of more than 10,000 tons of CO2 emissions each year, based on an assumption of 750,000 shipments annually, with further potential in the years ahead.

The team behind the concept consists of Ford and Penske logistics experts. Together, they have designed flexible logistics solutions for both the inbound and outbound shipments by integrating the supply chains of participating brands to create a collaborative logistics network.

Simply excellent
“Simply excellent”, were the words the jury used to describe the project. “Redesigning a spare-parts supply chain is not an easy task, but combining this with the acquisition of other brands to be included in the logistics network in Europe is a true challenge. This supply chain is particularly complex, due to the high number of unique items to be managed, the heterogeneity of those items, and the extremely short lead times that dealers require. The industry-wide cooperation makes the Network Integrator a state of the art example. This excellent concept produces excellent results in cost reduction, increased customer service and advantages for the planet through deep collaboration. On top of that it delivers several exemplary models for the future.”

The Network Integrator – a joint distribution platform for the entire automotive industry
Spare-parts logistics has become more challenging for the automotive industry due to the increasing number of spare parts as a consequence of increased vehicle complexity. Ford collaborated with Penske Logistics and co-developed the Network Integrator concept into a best-in-industry model in collaboration.

“The Network Integrator concept is part of Ford’s holistic efforts to further reduce the environmental footprint of our products along their entire life-cycle, including the supply chain”, said Raymond Damerow, Director Parts Supply and Logistics, Ford European Customer Sales Division.

“Our goal is to continue expanding the concept and encourage other companies of the automotive industry to join the Network, and further leverage economies of scale – to the benefit of each partner participating in the Network and to the environment. Last but not least, the customer benefits as well, as we can provide the highest service level through a stable network also in difficult times.”

“Ford and Penske have worked together globally for years to develop creative and efficient supply chain solutions”, said Brian Ruprich, Europe’s Managing Director for Penske Logistics. “The Network Integrator model has evolved into a solid solution that is delivering results and that has exceeded expectations for some time now. It also proves smart solutions can contribute to a greener supply chain at lower costs while maintaining high services level. We are sincerely honored to receive this award, but it would not have been possible without the close, long-term collaboration with the Ford team.”

Also awarded as a finalist in this completion is the company Innofreight with their project Innofold.
Innofold: bulk cargo container for modern logistics in Switzerland, Europe.
Innofold is a rectangular shaped, collapsible container that can be used to transport light to moderately heavy bulk materials (to a max. of 1000kg/m3), both on the rails and on the road. It is either open on the top or equipped with a cover that can be opened for loading and unloading. Innofold is designed to be comfortably collapsed and set up. This mechanism has to maintain its full functionality in all weather conditions.
The jury awarded them because of the unique and innovative aspect of engineering.

With an overall impressive project Geberit GmbH became the third finalist. The jury marked Geberit GmbH as trendsetter in the field of logistics technology standards and their project “The radical restructuring of Group Logistics (added value and customer satisfaction through an integrated strategy)” determined as “high level of innovation” working throughout the worldwide network and example of using logistics as a catalyst for the development of modern successful company.