Ford Motor Expands Supplier Network
Published:28-June-2009
By Staff Reporter
The company has added 16 new members to the Aligned Business Framework
Ford Motor (Ford) has expanded its Aligned Business Framework (ABF), adding 16 new members to a group of key component and service suppliers, selected for long-term relationships and closer collaboration.
Ford said that it has accelerated its supplier consolidation plans. The company’s global purchasing organization is expected to have identified 850 production suppliers eligible for new sourcing, by the end of 2009.
Tony Brown, Group Vice President, Global Purchasing, Ford, said: "Despite the industry challenges we are all facing, Ford is making steady progress identifying more suppliers for long-term relationships while at the same time reducing our total number of suppliers."
"Both of these elements were part of our ABF strategy since it was launched in 2005. They are even more critical now as the auto industry moves through a difficult restructuring period toward a more sustainable business model for suppliers and automakers alike," he added.
Ford has a long-term goal to reduce its supply base to about 750 production suppliers, eligible for major sourcing. Ford had about 3,300 such suppliers in 2004, a number that had dropped by about half by the end of 2008, the company said.
As ABF membership is restricted to suppliers of key components and services, not all long-term Ford suppliers would be members of ABF.
