Ford Supply Chain

of me lear

FOR GLOBAL SUPPLY CHAIN EXCELLENCE

Redesigned Supply Chain Positions Ford for Global Competition

National Association of Manufacturers and World Trade Magazine cite Ford for Advances in Supply Chain Strategy and Processes.

By NeilShister Editorial Director

M

anaging tlie supply chain of the Ford Motor Company, one of the worlds premier industrial giants ($171 hiltion revenues in 2004) ranks among the most difficult challenges in global manufacturing. Ford manufactures and distributes automobiles in 200 markets across six continents (besides Tord, Lincoln and Mercury, brands inchide Aston Martin, Land Rover, Mazda and Volvo). North American operations alone involves keeping a network of 19 assembly plants, eight stamping plants, 10 power-train plants and five forging/casting plants supplied with parts and materials.

directly to each individual plant—cannot be overestimated. To do it in two and one-half years, saving 17 percent in costs and improving the reliability of the new network to near 6.0 sigma performance level, is impressive. But, to have accomplished it while still maintaining on-going operations—without ever having the option to shut down a plant or assembly line, is nothing short of monumental. Nearly from its inception. Ford has been a leader in supply chain practices as part of its innovative assembly line. In the time of Henry Ford, the company directly controlled key material sourcing operations, all the way to mining its own iron ore to ship in its own boats to be rolled into steel in its own mills; meanwhile tire suppliers and the like had their factories nearby. The company's supply chain of 200.5 hears scant resemblance to Henry Ford's. "The days of being 100 percent selfsufficient and capable in today's world of high technology and engineering are gone," Belanger observes. Stark, unremitting global competitiveness has made it imperative that organizations constantly evaluate their use of resources. It is no longer an...