FORD AND ORACLE CREATING MULTI-BILLION $$$ BUSINESS-TO-BUSINESS NET VENTURE: New Company To Web-Enable, Link $300 Billion Automotive Supply Chain To Dealers, Consumers.Ford Motor Co. and Oracle Corp. last week announced the AutoXchange, an automotive e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. integrated supply chain to be built and run by a newly formed joint venture between the two firms. The venture will initially focus on Ford's $80 billion in annual purchasing transactions with its more than 30,000 suppliers and $300 billion extended supply chain. The two companies say their goal is to create the world's first automotive online supply chain network, and the world's largest business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. electronic network. The new online automotive marketplace is expected to dramatically reduce Ford's purchasing costs and increase its operating efficiencies through an integrated Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the supply chain system. It will also extend Ford's core business into a virtual e-business enterprise, allowing direct connections of the supply chain to the consumer to reduce Ford's time to market. Under preliminary terms of the deal, Ford will own a majority of the new joint venture which is expected to become operational in the first quarter of 2000. The AutoXchange will allow Ford and its suppliers to achieve savings through more strategic sourcing of vehicle components, and eventually automate To turn a set of manual steps into an operation that goes by itself. See automation. the entire purchase process. For its part, Oracle will provide the software, implementation and support, as well as host and manage the AutoXchange. Powered by Oracle Exchange, Oracle's online e-business solution, the AutoXchange's supply chain capabilities will ultimately extend to other initiatives such as warranty, performance and design collaboration Working together on a project. See collaborative software. , eventually becoming the e-business backbone backbone: see spinal column. The part of a network that handles the major traffic. It employs the highest-speed transmission paths in the network and may also run the longest distances. that connects Ford's customers with their suppliers. |
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