Ford eProcurement Case Example

 

CASE EXAMPLE: FORD - E-PROCUREMENT IN A MANUFACTURING COMPANY

 

Ford spends an estimated $15.5 billion each year on non-production goods and services, making it one of the largest purchasers of such goods world-wide.
With Ford's continuing quest to cut costs, Ford utilises an e-procurement solution, with the intention of cost cutting from the everyday tasks such as purchasing office supplies, and filing expense reports.

Ford has revised the purchasing process, instead of receiving catalogues, and having employees complete purchase orders that must be approved by management, which often takes days or weeks. Employees now log onto an Internet system, browse manufacturers catalogues, order from a pre-approved group of suppliers, and obtain purchasing approval in minutes. Ford anticipates to cut spending and transaction costs by as much as thirty percent.

Ford also uses procurement applications for processing the more than one million travel and expense accounts that employees submit each year. It is estimated that large corporations spend about $36 on processing each expense report. As this example illustrates, the focus of procurement automation is not so much on production-related raw materials but on non-production goods.

This case examples was supplied by EDS. To learn more abour E-procurement read the paper Electronic Procurement supplied by Steven R Leonard, President EDS E.solutions EMEA, UK. This paper is part of our eBusiness and eWork pages.

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