Ford drives towards huge savings with Oracle e-procurement project


Ford drives towards huge savings with Oracle e-procurement project

David Bicknell

David Bicknell

Oracle has begun implementing electronic procurement as part of an ambitious e-business relationship worth tens of billions of dollars with US motor giant Ford.

The project called AutoXchange, was first announced in early November with the goal of facilitating the creation of an e-business integrated supply chain run jointly by the two companies.

The project is expected to lead to an overhaul of the $80bn Ford spends each year on purchasing. More than 30,000 suppliers are part of an extended supply chain worth more than $300bn.

The Ford-Oracle e-business relationship is expected to comprise all elements: supply chain management, customer relationship management, and e-procurement.

A similar project, dubbed Trade Exchange is also being developed by Ford's main rival, General Motors, together with e-commerce specialist Commerce One.

Oracle is now expected to build on the Ford relationship to develop its e-business solutions for other market sectors, such as aerospace.

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