"Considering the impact suppliers have on our business, with 70 percent of the value of the vehicle being purchased from our supplier partners, our suppliers are critical to our ability to offer attractive solutions to our customers," said Thai-Tang. "Ford's Aligned Business Framework, which we introduced close to ten years ago, fosters an environment of transparency and will continue to guide our close relationships with our suppliers."
New LED Headlamps on the 2015 Ford F-150
Strong ties with suppliers
Ford has relationships with more than 1,100 production suppliers operating at more than 4,600 manufacturing sites that produce 130,000 parts for inclusion in vehicles the company sells. Because of the integral role its suppliers play in the company's overall growth and sustainability, Ford works to foster a business environment that is both creative and transparent, leading to new innovations and acceleration in the development of new vehicles.
A core component of Ford's strong supplier relationship is its Matched Pairs system, an internal alignment initiative between its product development and purchasing departments. Through the system, not only are the technical and commercial strategies aligned, but members from each department are paired so that decisions are made in tandem from the beginning. This approach increases collaboration from product design through procurement, and simplifies communication by reducing the points of contact for each commodity. The alignment of the two departments means they share a common cost objective, and improves interaction with suppliers by allowing them to engage directly at the right level.
The Matched Pairs system is part of Ford's Aligned Business Framework. It enables supplier innovations to reach customers quicker by providing more robust tracking of new technologies, from idea to implementation. The framework encourages more communication between suppliers and senior Ford leaders, offers greater opportunities to increase scale, and engages suppliers earlier in the product design process. Ford has more than 100 Aligned Business Framework suppliers.
Another framework initiative helping to spur supplier innovation is the Executive Business Technology Review. This allows Ford's senior leadership team from product development and purchasing to experience suppliers' latest technologies through a show-and-tell, and for Ford to potentially be the first automaker to introduce these technologies to drivers around the world. Key technologies introduced through the review include Ford's hands-free liftgate, active park assist and lane-keeping system, which debuted on various 2012 and 2013 Ford vehicles. Ford will continue to leverage its Aligned Business Framework to provide a systematic structure for suppliers to introduce new technologies to Ford customers.
"Many technologies on the road today were developed as a result of our supplier relationships," said Thai-Tang. "We will continue to strive to be our suppliers' customer of choice through our continued new product introductions and emphasis on technology excellence."
Source: Ford Motor Company
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