Executive Briefings

SPECIAL ISSUE: 100 Great Supply Chain Partners

Schneider Logistics Helps Ford Improve Dealer Satisfaction

Ford Customer Service Division (FCSD) recently was named "The Bottom Line: Most Improved OEM" by its dealers for its costs, parts availability, delivery rates and shipment quality. But according to Frederiek Toney, Ford's director of North America parts supply and logistics, his division owes much of the credit to Green Bay, Wis.-based Schneider Logistics.

Toney says that Schneider helped FCSD revolutionize its aftermarket parts and service supply chain to help its dealers get parts faster. FCSD achieved this improvement through a program called the Daily Parts Advantage network (DPA), based on the idea of segmented inventory (e.g., fast-moving parts housed in a few strategic geographic locations and slower moving parts in one or two central locations). The DPA network enables Ford dealers to order and receive parts every day instead of just once or twice a week. To date, the DPA network has allowed FCSD to cut order-to-delivery times of from two to five days to less than 12 hours, and reduce costs by 10 percent.

The selection process was conducted by Carlisle & Company, a private consulting firm focused on the motor vehicle and service parts industry. FCSD was ranked as the "Most Improved OEM" among parts customers who responded to a survey soliciting feedback on costs, parts availability, delivery rates and shipment quality.

"FCSD is honored to be recognized by Carlisle & Company and professionals across the industry for our service improvement to our dealers," said Toney. "Schneider Logistics played a crucial role in our DPA network in implementing our innovative delivery system, enabling our dealers to reduce inventory and at the same time improve customer service satisfaction."

Ford Customer Service Division (FCSD) recently was named "The Bottom Line: Most Improved OEM" by its dealers for its costs, parts availability, delivery rates and shipment quality. But according to Frederiek Toney, Ford's director of North America parts supply and logistics, his division owes much of the credit to Green Bay, Wis.-based Schneider Logistics.

Toney says that Schneider helped FCSD revolutionize its aftermarket parts and service supply chain to help its dealers get parts faster. FCSD achieved this improvement through a program called the Daily Parts Advantage network (DPA), based on the idea of segmented inventory (e.g., fast-moving parts housed in a few strategic geographic locations and slower moving parts in one or two central locations). The DPA network enables Ford dealers to order and receive parts every day instead of just once or twice a week. To date, the DPA network has allowed FCSD to cut order-to-delivery times of from two to five days to less than 12 hours, and reduce costs by 10 percent.

The selection process was conducted by Carlisle & Company, a private consulting firm focused on the motor vehicle and service parts industry. FCSD was ranked as the "Most Improved OEM" among parts customers who responded to a survey soliciting feedback on costs, parts availability, delivery rates and shipment quality.

"FCSD is honored to be recognized by Carlisle & Company and professionals across the industry for our service improvement to our dealers," said Toney. "Schneider Logistics played a crucial role in our DPA network in implementing our innovative delivery system, enabling our dealers to reduce inventory and at the same time improve customer service satisfaction."