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Supplier Business
Thursday 18th December 2014
Supplying Ford

Supplying Ford

Price: $2340
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Publication Date: 05/12/2012
Number of Pages: 113

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When Ford CEO Alan Mulally announced the introduction of the ‘One Ford’ strategy in 2008, it started a chain of events that has led to what could be argued has been the most comprehensive overhaul of a single OEM in the history of automotive production. In implementing this programme, the company has shifted from a disparate group of regional divisions producing largely unique models, to a globally-oriented organization which uses the combined resources of each region to develop and produce ‘world’ vehicles.

Although Ford can claim to have built other world vehicles in the past, no other vehicle programme compares to production of the third-generation Focus. The model, which is now built at five plants located in strategic locations around the globe, is reported to share 80% of all parts across all production sites, while each plant uses virtually identical manufacturing processes in order to streamline production and take advantage of the unique efficiencies that this repetition creates.

Over the short- to mid-term, Ford will look to build its portfolio of world models, with the introduction of the North American-developed Fusion in Europe and Asia as the Mondeo, the launch of the Transit as the OEM’s worldwide LCV offering and the introduction of the next-generation Fiesta, which will look to achieve the same part-sharing metrics as demonstrated in the latest Focus.

About this report

The  Supplying Ford report looks at what changes have been made at Ford in order for the OEM to accomplish the goals outlined in the ‘One Ford’ strategy. The author also takes an in-depth look at how the changes have affected procurement activities at Ford and the further developments that are likely over the coming years as the company switches to a globally-oriented method of vehicle development and production. It takes in the model, platform and production strategy and delves into the purchasing strategies at Ford with analysis of global purchasing , supplier selection, technology and quality expectations. This report is  packed full of insight, data  and analysis that will prove invaluable to those partnering or looking to work with one of the global automotive industries biggest players.

OVERVIEW

Introduction
Overall sales
Financials

PRODUCT AND PLATFORM STRATEGY

Strategy overview
Major model programmes
Platform strategy
Major platforms
Component sharing
Volume planning

PRODUCTION STRATEGY

Production strategy overview
Manufacturing network
Internal supply network
Modularisation strategy
Supplier parks
Cluster of reference
Strategies for manufacturing efficiency

PURCHASING STRATEGY

Purchasing strategy overview
Levels of vertical integration and outsourcing
Purchasing organisation
Purchasing offices
Key offices
Key purchasing personnel
Purchasing spending

SUPPLIER SELECTION

Supply base development
Major and strategic suppliers
Supplier selection criteria
Working with Ford

GLOBAL SOURCING

Policy and plans
NORTH AMERICA
EUROPE
ASIA PACIFIC
SOUTH AMERICA
PRICING POLICY
Price reduction plans and practices
Payment terms
Cost-reduction programmes
Raw material price management

QUALITY MANAGEMENT

Quality level
Quality management systems
Integration into product development
Management of sub-suppliers
Supplier awards

TECHNOLOGY

Technological positioning
Areas of focus
R&D spending
R&D organisation
Access to supplier technology
Approach to alternative fuels, electrification and fuel cells
Special vehicle development

INTERVIEW

OEM-SUPPLIER SURVEY RESULTS

Introduction to the SuRe Index
Methodology
Executive summary
Profit potential
Organization
Trust
Pursuit of excellence
Outlook

SWOT ANALYSIS - SUPPLYING FORD

GLOBAL FOOTPRINT

FORWARD MODEL PROGRAMME

MAJOR SUPPLIERS – FORD


LIST OF FIGURES AND TABLES

Figure 1: Global light vehicle sales, 2006-2011 (Source: IHS Automotive)
Figure 2: Declining European Mondeo sales (2000–2018)
Figure 3: Ford Annual Global platform usage - 2012 and 2017
Figure 4: Ford employees celebrate production of the company's 350 millionth vehicle at the new Ford Thailand Manufacturing plant
Figure 5: List of Ford Operations Worldwide (Oct 2012)
Figure 6: Tony Brown accepting the MMSDC Corporation of the Year award
Figure 7: Ford’s description on ‘creating a sustainable supply chain through our aligned business framework’
Figure 8: Focus Suppliers Add Jobs to Support Global Launch
Figure 9: Dr. Werner Struth, Member of the Board of Management at Robert Bosch GmbH receiving the World Excellence Award from (left to right) Tony Brown, group vice-president Global Purchasing, Alan Mulally, president and CEO, and Raj Nair, group vice-president, Product Development
Figure 10: The 2013 Shelby GT500 Cobra
Figure 11: SuRe Index 2010-2011
Figure 12: Ford Motor Company - Global plant locations
Figure 13: Ford Motor Company – North American plant locations
Figure 14: Ford Motor Company – North American plant locations
Figure 15: Ford - Forward Model Programme - by Global Nameplate

Table 1: Ford financial data overview (Source: Ford Motor Company, Reuters, Moody's, Fitch, S&P)
Table 2: Declining European Mondeo sales (2000–2018)
Table 3: WSW Suppliers to all three models - Ford Fusion (MY2012), Escape (2012), Focus (2010)
Table 4: Major suppliers to Ford

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