Scribd
Upload
132 views

Ford Existing Practices: Maintaining Supplier Relationships Ford Production System

Ford maintained supplier relationships by having tier 1 suppliers manage relationships with tier 2 suppliers. Ford assisted suppliers with quality initiatives in return for price reductions. Suppliers struggled to invest in technology. Ford reduced customer order to delivery time to under 15 days from 60 days through regional mixing centers and forecasting customer demand. Ford focused on level production through internal and external expertise using synchronous material flow and inline vehicle sequencing to reduce buffer costs and allow suppliers to know exactly when items were needed. Ford bought regional suppliers to save them from competition and located service outlets near customer populations. This restructuring affected automobile business as well as body shops and vehicle systems operations.

Uploaded by

Abhiroop Mukherjee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
132 views

Ford Existing Practices: Maintaining Supplier Relationships Ford Production System

Ford maintained supplier relationships by having tier 1 suppliers manage relationships with tier 2 suppliers. Ford assisted suppliers with quality initiatives in return for price reductions. Suppliers struggled to invest in technology. Ford reduced customer order to delivery time to under 15 days from 60 days through regional mixing centers and forecasting customer demand. Ford focused on level production through internal and external expertise using synchronous material flow and inline vehicle sequencing to reduce buffer costs and allow suppliers to know exactly when items were needed. Ford bought regional suppliers to save them from competition and located service outlets near customer populations. This restructuring affected automobile business as well as body shops and vehicle systems operations.

Uploaded by

Abhiroop Mukherjee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 2

FORD EXISTING

PRACTICES
MAINTAINING SUPPLIER
RELATIONSHIPS
Tier 1 Suppliers would manage relationship with tier 2
suppliers to create long-standing relationships
Assisted suppliers with JIT, TQM and SPCs and in return
asked for price reductions in the next year
Suppliers were not able to invest in technologies and
educating them about the problem was difficult
Suppliers were primarily based on cost but overall supply
chain costs were not considered
ORDER TO DELIVERY

Reduce customer order delivery time to under 15 days from


60 days
Regional mixing centers that optimized the transportation
schedules
A robust order amendment system for minor
customizations like color and style
Forecasting of customer demand from dealers

FORD PRODUCTION SYSTEM


Focus on more level and synchronized production
through internal and external expertise
Synchronous material flow which ensured continuous
flow of materials and products based on efficient
vehicle scheduling
Inline Vehicle Sequencing that used vehicle in-process
storage devices to assure vehicles were ordered in
sequence
With this they could dramatically reduce the buffer
costs and suppliers can tell when the exact thing is
needed
FORD RETAIL NETWORK

Bought regional suppliers to save them from intra


competition
Consistent exterior look but brand oriented interiors
Service outlets closer to customer population centers
Would effect not only the automobile business but also
body shop operations and vehicular systems

You might also like