Back in 1948 the Ford Motor Company first approached the Howard Ternes Packaging Company for the contract packaging of some of its service parts. Ternes was asked to crate components for military vehicles for shipment to post war Europe. At that time no one could possibly have imagined the magnitude of the relationships that Ford would create with a number contract packaging firms in Southeast Michigan. Working as closely as they do with the people of FCSD one would have to agree that what started out as a business relationship has truly evolved into a what is more appropriately called a partnership.


As partners, contract packagers are asked to provide a variety of services that go well beyond the usual processing of parts consigned to us, which include inspecting, rustproofing, applying cushioning, packaging, labeling, palletizing and shipping. Because of their relatively small size and experienced management, those in the contract packaging community are able to quickly respond to such requests as emergency warehousing services or assistance with a major recall campaign. In one such instance, Howard Ternes Packaging was able to lease a building, acquire staff, purchase parts, design custom packaging, package parts and provide warehousing for those parts. Ternes was able to begin shipping parts in a matter of days and had this operation running at capacity in a matter of weeks. Five months later the campaign was complete and the facility was shut down completely. Now that’s flexibility! Some of you will no doubt remember the Contour/Mystique fuel tank recall to which this case refers.


Additionally, contract packagers are responsible for running programs dealing with global distribution, truckload crash parts packaging, and repackaging of parts which have packaging that is damaged or below quality standards. Small service parts suppliers, without the resources to interface electronically with FCSD, are able to continue as vendors by dealing directly with a contract packager, Ternes Procurement Services, which in effect purchases, packages and supplies parts to FCSD.


The success of the contract packagers and the various programs they manage for FCSD are made possible by the close partnering relationship that exists between Ford and these companies. It is no coincidence that most contract packagers are located within a few minutes drive of FCSD headquarters. Their presence inside Ford facilities is ongoing and welcomed--and they have the security badges to prove it! It is not unusual for packagers to have managers who are members of ad hoc FCSD committees. Input is sought from their management on important matters that impact their operations. For many years most of the computer data, which is available to FCSD employees, has been readily available to packagers’ personnel via direct computer phone links. Employees of contract packagers are encouraged to utilize the Ford Training and Development Center as needed. Similarly, the packagers genuinely welcome FCSD representatives into their facilities. Due to the open nature of auto manufacturers today, the opportunity for Ford and other clients to learn from each other is always present while visiting packagers’ facilities. In summary, it is the willingness of packagers and FCSD to freely share information and resources that allows this partnership to flourish.


For over 50 years FCSD has relied on contract packagers to perform the bulk of its parts packaging. Under the watchful eye of Ford they are often called upon to implement and manage new programs--often on very short notice. Whenever possible Ford seeks input from these unique suppliers early in the development of each new program. With each successful program the level of mutual trust grows. One might say that in many ways there exists a co-dependency that resembles a marriage--a successful marriage in which neither side takes for granted their partner. Management at the contract packagers drive mostly Ford vehicles and make every effort to promote its products. They celebrate the successes of the Ford Motor Company and are concerned with its shortcomings. By continuing to work with FCSD to develop programs that keep costs low and customer satisfaction high, the contract packagers have committed themselves to a relationship in which all parties--consumer, dealership, contract packager, FCSD, and the shareholders of Ford Motor Company--emerge as winners.

Learn more about the author of this article, Tim Kerr, in this months "Who's Talking" article.