Executive Briefings

Ford Motor Co. Models Its Supplier Sustainability Initiative

Automakers like Ford rely on thousands of tier-one suppliers to provide the materials, parts and services to make its final products. Many suppliers serve numerous automakers, and each of those suppliers, in turn, has multiple suppliers. Other industries' supply chains (such as electronics) are intertwined into the automotive supply chain. There are often six to 10 levels of suppliers between an automaker and the source of raw materials that eventually enter the manufacturing process. The breadth, depth and interconnectedness of the automotive supply chain make it especially challenging to effectively manage business and sustainability issues.

In pursuing its supply chain sustainability objectives, Ford has taken a three-pronged approach to effectively engage suppliers throughout the chain.

1)  Individual facilities. Training and capability building are the fundamental basis of Ford's supply chain sustainability program, supported by assessments of individual tier-one supplier factories.

2)  Corporate engagement. Ford is building stronger supplier relationships and leveraging a supplier partnership initiative, called the Aligned Business Framework (ABF), to enhance supplier ownership at the corporate level for supply chain sustainability management and performance systems at its suppliers and throughout the automotive supply chain.

3)  Industry collaboration. Ford is driving collaboration and tool development for global supply chain sustainability issues through industry and cross-industry partnerships.

Ford has undertaken several key initiatives to strengthen its supplier relationships and manage supply chain sustainability performance across its supply chain, including its ABF. Strong relationships with suppliers must be based on open communication, clear expectations and consistent requirements and processes.

Read Full Article


Keywords: supplier base, supplier relationship, multi-tier supplier network, multi-echelon supplier network, supplier sustainability requirements, sustainable supply chains

In pursuing its supply chain sustainability objectives, Ford has taken a three-pronged approach to effectively engage suppliers throughout the chain.

1)  Individual facilities. Training and capability building are the fundamental basis of Ford's supply chain sustainability program, supported by assessments of individual tier-one supplier factories.

2)  Corporate engagement. Ford is building stronger supplier relationships and leveraging a supplier partnership initiative, called the Aligned Business Framework (ABF), to enhance supplier ownership at the corporate level for supply chain sustainability management and performance systems at its suppliers and throughout the automotive supply chain.

3)  Industry collaboration. Ford is driving collaboration and tool development for global supply chain sustainability issues through industry and cross-industry partnerships.

Ford has undertaken several key initiatives to strengthen its supplier relationships and manage supply chain sustainability performance across its supply chain, including its ABF. Strong relationships with suppliers must be based on open communication, clear expectations and consistent requirements and processes.

Read Full Article


Keywords: supplier base, supplier relationship, multi-tier supplier network, multi-echelon supplier network, supplier sustainability requirements, sustainable supply chains