COLOGNE, Germany - The European Logistics Association (ELA) has honored Penske Logistics and Ford Motor Company with this year’s European Award for Logistics Excellence in recognition of the innovative Network Integrator concept developed by the two companies.
The Network Integrator concept is a joint project of Ford’s European Customer Service Division (FCSD) and Penske Logistics to optimize spare-parts supply enabling collaboration for multiple car brands across Europe. The award ceremony took place in Kiev, Ukraine, yesterday.
Since its introduction, the Network Integrator concept 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.
The team behind the concept consists of Ford and Penske Logistics experts. Together, they have designed flexible logistics solutions for both inbound and outbound spare-parts shipments by integrating the supply chains of participating brands to create a collaborative logistics network.
“Simply excellent,” were the words the jury used to describe the project. “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.”
Spare parts logistics has become more challenging for the automotive industry in recent years due to the ever increasing number of components used in complex vehicles.
“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.”
“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.”
*Calculation is based on SmartWay European Standard, applied throughout the Logistics Industry