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Ford puts buyers at centre of business overhaul

19 Jan 2010

Source: SupplyManagement.com, 13 January 2010

Procurement is playing a vital role in carmaker Ford’s plans for a new manufacturing strategy.

In an announcement this week at the North American International Auto Show in Detroit, the company said buyers have had to develop global supplier relationships to help manufacturers in three continents with plans to build cars using shared processes, tools and technologies.

A range of 10 car models, including the latest Ford Focus, will be produced using this single manufacturing process in Germany, Spain, Russia, China and the US.

Ford said building the global supply base to support this has been the primary objective of the purchasing team. Instead of working with vendors regionally, they have gathered at central meetings where buyers have provided suppliers with more information on product features, manufacturing volumes and locations than ever before.

Tony Brown, group vice-president, global purchasing, said: “By coordinating our efforts at an earlier stage, suppliers can drive potentially huge cost efficiencies. They also contribute significantly to ensuring consistent levels of excellent quality."

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