Ford, UPS Forge Logistics Alliance
Ford Motor Co. has enlisted the logistics arm of United Parcel Service to oversee its delivery network, a deal the auto maker hopes will reduce by up to 40% the time it takes to deliver vehicles to dealers and customers and help it cut costs.
The deal — which Ford said would give it a unique delivery network for its vehicles — is expected to significantly reduce the manufacturer’s multi-billion dollar vehicle transportation, distribution and inventory costs and cut delivery times for cars enough to affect the price of a vehicle. It also could lead to more use of trucks to transport automobiles, at the expense of the railroads.
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In March, all Ford vehicles in the United States, Canada and Mexico will be shipped under the direction of UPS Logistics Group. With the help of the logistics unit, Ford expects to know where new cars en route to dealerships are, and who is accountable for delays.
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Terms of the agreement were not released.
