Ford Motor Company

Company Success Through Data Integration

Officials at Ford Motor Company integrated their company's vehicle plant data and purchasing data in a Teradata Warehouse, allowing them to build a vehicle-level view of profitability that incorporates the impact of both raw materials and non-standard incremental features for each stock keeping unit (SKU). Ford extracts real-time vehicle profitability details from Teradata and delivers it to information stakeholders at least daily, or more often during peak reporting periods.

When Ford Credit began actively using Teradata to better market and structure the business, large amounts of data began feeding Ford's decision support and branch profitability analysis system. For the first time, vital information became available in two to three days, rather than the typical 10 days.

Yet one of Teradata's most impressive Ford gains was in inventory optimization for Parts, Service and Logistics. Ford required visibility, monitoring and proactive alerting across the entire $90 billion supply and distribution chain. The scope of the original project in 2001 included tracking the parts of 35 model years of vehicles, 2,000 parts suppliers, 220,000 to 250,000 possible part numbers and almost 7,000 dealers.

When Teradata's Supply Chain Management and Logistics solutions, known by Ford as Inventory Monitoring Alert System (IMAS), went into full production in January 2001, positive results emerged within the first year:

  • Back orders dropped 20%
  • Safety stock inventory levels were reduced 20%
  • Cycle time decreased 30%

Today Ford has migrated from a 30-day data refresh cycle to a one-day cycle. Ford uses Teradata to lower costs and improve efficiency, and now Ford has extended IMAS into its packaging and coating (parts painting) centers.


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