Ford wants Tier 1 suppliers to prepare disaster plans

Article by Andrew Christian, 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

Login or Create new account to add a comment!

Recommended

Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016