Ford and Oracle Launch AutoXchange, a Revolutionary Automotive Supply Chain E-Business

Strategic Insights -

Ford Motor Company, the world's largest producer of trucks, and Oracle Corporation, the world's leading supplier of software for information management, have joined forces to create the AutoXchange, an e-business supply chain that will link $300 billion in automotive transactions to dealers and consumers. The joint venture, expected to become operational in the first quarter of 2000, will create the world's largest Internet supply chain, facilitating Ford's $80 billion annual purchasing transactions with over 30,000 suppliers.

Key Takeaways:

  • The AutoXchange will reduce Ford's purchasing costs and increase operating efficiencies through an integrated Internet supply chain system, allowing direct connections of the supply chain to the consumer.
  • The e-business platform will promote procurement efficiencies, enabling Ford's purchasing professionals to focus on product quality, supplier competitiveness, and performance, and time to market.
  • Oracle will provide the software, implementation, and support for the AutoXchange, powered by Oracle's Exchange, an online e-business marketplace.
  • The joint venture will initially facilitate Ford's $80 billion annual purchasing transactions with over 30,000 suppliers and $300 billion extended supply chain.
  • The AutoXchange will create the world's first automotive online supply chain network and the world's largest business-to-business electronic network.
  • Ford and Oracle expect the AutoXchange to deliver major productivity to Ford, real savings to suppliers, and reduced inventories to dealers.

Statistics:

  • Ford's annual purchasing transactions with over 30,000 suppliers: $80 billion
  • Extended automotive supply chain transactions: $300 billion
  • Number of global corporations currently using Oracle Internet Procurement software: over 300
  • Number of users on BT's online platform: 25,000
  • Annual revenues of Oracle Corporation: over $9.1 billion

Sources:

  • PR Newswire, "Ford and Oracle Launch AutoXchange to Link $300 Billion Automotive Supply Chain" (Nov. 2)
  • Oracle Corporation, Oracle Exchange (http://www.oracle.com/)
  • Ford Motor Company, Ford Motor Co. (http://www.ford.com/)