installed systems while also preparingfor the future systems.

The ResultImprovements include increasedcustomer fill rates, reduced opencustomer back-order lines and reducedinventory value, all leading to highercustomer satisfaction.

How Ford and CapgeminiWorked TogetherParts supply is, by its very nature, anunusually complex matter. The FordCustomer Service Division (FCSD)supplies service parts to more than10,000 dealerships throughout theworld. As a matter of routine, over500,000 unique part numbers aresupplied on the network to dealersand the customer demandvolatility level in this processis remarkable.

The SituationThe integrity of the Ford MotorCompany’s brand has been secured,decade after decade, by the quality ofthe customer experience as it applies toevery aspect of ownership: productquality; routine maintenance; dealersupport of customers’ vehicles.

In this essential area of the customerrelationship, parts supply to the dealershas a vital role to play. In reviewing itsservice parts supply chain, Ford’s goalwas to deliver best-in-class performance.One major question was: What could bedone to improve performancesignificantly in the short term, whileplanning for change on a larger scaletook place?

The SolutionCapgemini worked with Ford todevelop a plan that included a blend oftechnology, process improvements, newmetrics and human skills, aimed atfinding pragmatic and achievableways to gain morefrom

in collaboration with

Ford Puts Its Customers inthe Driver’s SeatCapgemini worked with Ford Motor Company toimprove its service parts supply chain

“The project was deliverednearly flawlessly—to scheduleand within prescribed financial

and other process/systemboundaries”- Ford executive

Ford Motor Company

Capgemini North America AutomotiveConsulting ServicesSupply Chain

Approved by:Jim Sourges, Vice President, AmericasAutomotive Sector Leader, Capgemini

It is clear that many aspects of partssupply are unpredictable, because noone can say for certain which parts willbe required for any given service orrepair. As a result, variation from theaverage level of requirement for anygiven part can range from as low as30% per time period to as high as400%+ per time period. Yet somehowthe delivery system has to take all ofthis volatility into account and providevirtually on-demand availability for eachservice or repair.

In reviewing its service parts supplychain, Ford’s goal was simple: to deliverbest-in-class performance. In anincreasingly competitive market, thismeant planning for significantimprovement of support levels. Somelegacy systems would need to bereplaced, while others upgraded. As arelatively long-term effort, thisprompted one major question: Whatcould be done to improve performancesignificantly in the short term, whileplanning for larger-scale change?

Capgemini, an adviser to different partsof the Ford Motor Company for severalyears, was invited to review the challengeand suggest how to meet it. Precisetargets included reducing inventorylevels, improving customer fill rates andreducing customer back order lines.

A key aspect of the solutions deliveredunder the plans facilitated byCapgemini was the way that consultantsand client staff formed themselves into asingle, focused team. The result wasadded speed and efficiency in achievingnear-term improvements, whiledelivering a high level of skills andknowledge transfer to the FCSD staff.

Specific solution ideas focused on theneed to improve aspects of the currentlegacy systems in order to achieve muchgreater efficiency. These includedsoftware tools to improve DistributionResource Planning in order to improveforecasting and improve inventoryvisibility throughout the supply chain.

Other tools were developed to measurevolatility and streamline inventory flow,thus shortening supply-chain leadtimes. Capgemini brought its uniquelevels of supply chain expertise to bear

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Automotive the way we do it

Copyright ©2006 Capgemini. No part of this document may be modified, deleted orexpanded by any process or means without prior written permission from Capgemini.

Capgemini, one of the world’s foremost

providers of Consulting, Technology and Outsourcing services, has a uniqueway of working with its clients, called the Collaborative Business Experience.Backed by over three decades of industryand service experience, the CollaborativeBusiness Experience is designed to help our clients achieve better, faster,more sustainable results through

seamless access to our network of world-leading technology partners andcollaboration-focused methods and tools.Through commitment to mutual successand the achievement of tangible value,we help businesses implement growthstrategies, leverage technology, and thrivethrough the power of collaboration.Capgemini employs approximately 61,000people worldwide and reported 2005global revenues of 6,954 million euros.

About Capgemini and the Collaborative Business Experience

In collaboration with The Ford Motor Company is one ofthe world’s leading automotivecompanies. Many millions of itsproducts are now on the roads ofevery country on earth.

• Open customer back-order lines wereover a full day’s business in both theUS and in Europe. The figures noware respectively less than 15% of aday’s business in the US (85%reduction) and less than 40% of aday’s business in Europe (60%reduction).

• Inventory value was $1,045 million inthe US and Europe. The figure todayis reduced to $838 million (animprovement of $207 million).

In terms of speed and efficiency, theseare remarkable enough achievements,but when translated into highercustomer satisfaction and thus increasedbrand loyalty, the true significance ofthe project becomes clear. Ford MotorCompany is now approaching best-in-class levels and the upcoming strategicchanges to systems and processes willextend Ford’s lead over its competitors.

on planning, developing and helpingFCSD deploy a wide range of high-impact solutions.

Some very clear results have beenachieved by the joint efforts of the manydedicated FCSD and Capgemini peoplewho have worked so hard on thisproject. The work was performed inparallel with process improvementsbeing implemented by FCSD in itssupply base and in the FCSD PartsDepot network. A few statisticssummarize the impact of all of theseimprovements:

• Customer fill rates (the percentage ofcustomer lines completely filled ontime) were 93% in the US and 93.6%in Europe. After the project, thenumbers are respectively 98% (animprovement of five points) and96.8% (an improvement of 3.2points).

Ford Motor Company