Ford Motor Company
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FORD and e-STEEL Enter Into Multi-Year e-Commerce Agreement
Automotive Leader to Use Leading Online Steel Exchange to e-Enable Major Web-based, Global Value Chain Purchasing Initiative
Dearborn, Mich., and New York, NY — Business Wire — May 17, 2000 — Ford Motor Company (NYSE: F), and e-STEEL Corporation, the leading negotiation-based e-Commerce exchange for the global steel industry, today announced an initiative to e-enable complex procurement programs with the automakers global Tier 1 suppliers. This relationship includes an equity incentive program that will earn the carmaker a minority equity stake in e-STEEL.
Ford selected e-STEEL (www.e-steel.com) to provide the steel-specific knowledge and functionality required to rapidly launch a steel e-Commerce procurement system to maximize efficiency and operational savings. Approximately 4-5 million tons of steel and steel-related products will be purchased via e-STEEL for metal stamping suppliers over the course of this contract.
The scope of the alliance covers the automakers steel order fulfillment processing, claims, financial controls, and audit reporting throughout its global manufacturing and assembly operations.
“Ford Motor Company has confidence in e-STEELs ability to deliver this Internet-based solution across its entire Tier 1 steel and metal stamping value chain, both in North America and Europe, within the next few months,” said Andrew Hinkly, Director, Raw Material Purchasing, Ford Motor Company.
“We selected e-STEEL as our partner due to their expertise in steel procurement systems, their efficient e-business tools such as STEELDIRECT™, and their existing broad coverage of our steel supply base,” added Hinkly. “These inherent strengths, and their results-driven management team, will lead to a successful implementation of this program.”
“The mutual focus of the Ford/e-STEEL alliance is that value is job 1, ” said e-STEEL Founder, Chairman, and CEO Michael S. Levin. “Our ValueTrack™ process and speed-to-solutions approach will accelerate Ford and its suppliers ability to realize substantial operational savings from this program. We are thrilled that Ford Motor Company, which is one of the most innovative global companies, selected e-STEEL for this important initiative.”