DEARBORN, Mich., REDWOOD SHORES, Calif. and SAN JOSE, Calif., Feb. 9/PRNewswire/ -- Ford MotorCompany (NYSE: F - news), Oracle Corporation (Nasdaq: ORCL - news) andCisco Systems, Inc. (Nasdaq: CSCO - news) announced today that Cisco willbecome an equity partner in auto-xchange, an online automotive exchange, to handleFord's $300 billion automotive supply chain with suppliers, dealers andconsumers. In this agreement, Cisco will bring secure network management toauto-xchange.
Last week, auto-xchange conducted its first online auction for productionparts of Ford vehicles. The auction volume exceeded $75 million.Auto-xchange is the only automotive exchange to provide the combinedcapability of business-to-business reverse auctioning, Internet procurementand supply chain management.
In addition to handling Ford's transaction volume, auto-xchange is activelyrecruiting other automotive companies to utilize this massive onlinebusiness transaction environment to gain purchasing efficiency and economyof scale.
For its part, Cisco will provide networking products in a quick start kitfor Ford's 30,000 suppliers. The kit will enable suppliers to gainimmediate, secure access to auto-xchange and begin transacting business.
Cisco will also bring expertise gained by implementing its ownmulti-billion-dollar Internet supply chain. For the past six years, Ciscohas worked aggressively to develop a collaborative relationship formanufacturing, product development and order management with its ownsuppliers. As a result production lead times have been cut in half and 60percent of its product volume is now shipped through direct fulfillment.
The combination of Oracle and Cisco technology will provide suppliers witha fast, secure, high volume transaction environment for e-commerce.
``In today's Internet economy, businesses are working together to redefinecompetitive advantage and create value for their customers and partners,''Cisco President and CEO John Chambers said. ``Cisco has pioneered 'virtualmanufacturing,' which delivers almost $500 million in financialcontribution and cuts customer product lead times in half. Through ourpartnership with Oracle and Ford, we will use Internet solutions to helprevolutionize the supply chain process.''
``We're pleased to welcome Cisco as a technology and equity partner inauto-xchange. We expect exchanges to become the business model of thefuture across all industries. Oracle is the only software that can handleInternet procurement, on-line auctioning, full supply-chain management,real-time inventory and resource optimization for increased efficiency,economy and faster time to market,'' said Ray Lane, president and COO,Oracle Corp. ``The technology combination of Oracle and Cisco is recognizedby our joint category leadership in e-business.''
``We are pleased with Cisco's commitment and level of support to the jointventure,'' said Jac Nasser, president and CEO, Ford Motor Company. ``Ciscois to auto-xchange what the assembly line was to the automotive industry.The combination of Cisco and Oracle provides an industrial strengthInternet Infrastructure.''