Ford wants Tier 1 suppliers to prepare disaster plans

Article by Christian A., on October 14, 2014

Ford Motor Co. is urging its Tier 1 suppliers to prepare backup production plans for key plants to ensure that vehicle assembly remains undisrupted even if they are crippled. According to Ford purchasing chief Hau Thai-Tang, suppliers could adopt different strategies to ensure a smooth flow of parts.

For instance, if a plant is rendered inoperable due to fire, flood or labor strife, some suppliers might certify a site in another region for emergency production. Likewise, a supplier might keep an inventory in a warehouse of certain parts if they aren’t produced anywhere else.

Thai-Tang told Automotive News in an Oct. 3 interview that while rerouting parts from another region is “great,” the lead time is really long and the potential loss is very high. Because of this, Thai-Tang noted that stockpiling certain parts might be “worthwhile.”

He quipped that Ford has already requested one supplier to maintain an inventory of door trim for a regional variant of a certain model since there might be labor disruption in the area.

Ford is concentrating its risk management on its 150 largest suppliers that account for about 80 percent of its annual direct purchasing budget. Ford is not alone is asking suppliers to help them prepare for disasters.

For example, Toyota Motor Corp. is urging around 400 suppliers in North America to identify key parts produced by just one plant. Toyota has told its suppliers to create plans to shift output of such parts in case of fire, flood or earthquake. Similar plans are already in place at Chrysler Group, spokeswoman Katie Hepler disclosed. [source: automotive news - sub. required]

Topics: ford

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries