Ford and Its Outsourcing
Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles across six continents. It is a publicly traded company on the New York Stock Exchange. The Company has about 198,000 employees and 90 plants worldwide with the automotive brands include Ford and Lincoln. The Company also provides financial services through Ford Motor Credit Company. The revenue of the company is $136.26 billion with a net income of $20.21 billion by 2011.
Ford’s Virtual Integration Strategy:
From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In …show more content…
Ford Motor Company is expanding its preferred supplier network into new areas by adding 17 parts and service providers to the Aligned Business Framework (ABF).
The new ABF companies come from a variety of industries, including roadside assistance and contact center services, roof system manufacturers, and powertrain and interior component firms. With the latest additions, Ford now has 102 companies in its ABF network of suppliers chosen for close collaboration over the course of long-term relationships.
“Our ABF companies represent the backbone of Ford’s global supply network,” said Tony Brown, group vice president, Ford Global Purchasing. “As we add new companies each year, we are building a core group of suppliers that are integral to carrying out the One Ford plan of profitable growth for all – including our suppliers.”
The ABF was launched in September 2005. Ford has built the network into a diverse group of suppliers that are playing a key role in its global sourcing plans, helping improve Ford quality and lower development and production costs.
As Ford brings more vehicles to market from global platforms, it is increasing the use of common parts and suppliers. For example, 80 percent of the parts on the new Ford Focus are common around the world, while 75 percent of the suppliers are the same wherever the car is built. ABF is also paying off for