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Market Research Report

SupplierBusiness : Supplying Ford

Published by SupplierBusiness
Published February, 2010 Product code 112435
Content info 117 pages
Price
US $ 1480 PDF by e-mail (Single User License)


SupplierBusiness : Supplying Ford published by SupplierBusiness in February, 2010. This report consists of 117 pages and the price starts from US $ 1480.

Introduction

Abstract

Overview

The last few months have underlined the importance of the OEM customer base of each supplier for medium- and long-term strategic success. This report, as a part of the Supplying OEMs series, provides guidance and insight into the OEM' s strategic position on the purchasing side.

  • OEM' s current standing
  • Production strategy (Locations, Platforms,etc)
  • Procurement spending and organisation
  • Levels of vertical integration
  • Biases in supplier selection
  • Business practices regarding pricing and quality
  • R&D Spending and focusings
  • Modules and systems outsourcing policy
  • Forward Model Programs
  • SWOT Analysis of Supplying the OEM

After having provided an overview on the current standing of the OEM with regards to various aspects including sales, financial performance, product line-up and the macroeconomic environment, the report analyses the production strategy of the car maker going through the operations, revealing where volumes are expected to occur at a geographical and program level and deciphering the car maker' s platform strategy. The core topic is the analysis of the car maker' s purchasing strategy with a focus on the most critical areas of the interface with its supply base involving supplier selection, price policy, quality approach, R&D and modules and systems.

Based on original research and SupplierBusiness' well-established surveys of working experiences with OEMs over the last few years, the report also provides the opportunity to grasp how current suppliers rate OEMs about a complete range of aspects that really matter to the supply base.

The report includes the SWOT analysis of supplying the OEM along with IHS Global Insight' s much respected Forward Model Programs and a list of the major suppliers by component sector.

Thanks to its added value and unique insight, the report is a must for those suppliers looking to re-optimise their customer portfolio in light of the major changes currently underway in the global automotive sector.

Background to this research

A compelling product line-up, a renewed focus on its core brand and the misfortunes of its main competitors have surely helped Ford, the only carmaker not to request US government financial support, to weather the gloomy business environment which saw the bankruptcies of its cross-town rivals.

Ford' s turnaround plan, based on an aggressive restructuring of its production network, employment levels and labour agreements, is well under way, although the reduction of its massive debt burden still represents one of the car maker' s biggest challenges.

The carmaker' s purchasing strategy is certainly influenced by the implementation of “One Ford” as a generalised plan to stimulate synergy savings across the organisation and on the product side with a portfolio of truly global cars, which represent very attractive programs for the supply base. The re-organisation of its internal production network, the disposal of the remaining Automotive Components Holdings plants and the difficult management of its former supplier arm, Visteon, have additional implications on the car maker' s purchasing strategy.

In addition to the above, this report analyses how the supply base consolidation plan is being carried out by the car maker, the latest updates on Ford' s Aligned Business Framework and the sourcing strategy at a regional level for major global sourcing areas. The approach to electrification, R&D focus, technology biases and quality management are also examined through the supplier' s lens. Throughout the report we describe an array of business practices, collected directly from Ford' s current suppliers, which help you understand what to expect when dealing with the car maker on a global basis. Thanks to our authentic internal research “Supplying Ford” represents an excellent support strategic decision-making for the medium-to-long-term and a barometer of the current state of relations between Ford and its large supply

Table of Contents

1. OVERVIEW

  • 1.1. Improved consensus but the aftermath....
  • 1.2. Roots of the positive momentum
  • 1.3. “One Ford” as a driver for a comprehensive overhaul
  • 1.4. New strategies in product offering under “One Ford”
  • 1.5. Bottoming in its primary market?
  • 1.6. Beyond Cash for Clunkers
  • 1.7. Two overlapping brands
  • 1.8. Interesting achievements in Europe
  • 1.9. Sales in growth areas
  • 1.10. Surprising financials
  • 1.11. Three main challenges after having avoided bankruptcy

2. PRODUCTION STRATEGY

  • 2.1. Current production network
  • 2.2. North America
  • 2.3. Focus on Asia
  • 2.4. Minor tweaks to European production
  • 2.5. Expansion of capacity in Brazil
  • 2.6. One Ford and platform strategy
  • 2.7. How “One Ford” affects manufacturing strategy

3. PURCHASING STRATEGY

  • 3.1. Overview
    • 3.1.1. “One Ford” and Purchasing
    • 3.1.2. An update on Aligned Business Framework
    • 3.1.3. Management of Visteon and temporary re-integration
    • 3.1.4. Vertical integration and outsourcing
  • 3.2. Purchasing Organisation
    • 3.2.1. Ford North American purchasing organisation
    • 3.2.2. Ford of Europe purchasing organisation
  • 3.3. Supplier Selection
    • 3.3.1. Resolute selection campaign
    • 3.3.2. Commonalisation on global programs
    • 3.3.3. “Good old boys network”
    • 3.3.4. Global Sourcing in Asia
    • 3.3.5. Supplier selection in Russia
    • 3.3.6. Localisation in South Africa
    • 3.3.7. Geographical spread of suppliers
  • 3.4. Pricing Policy
    • 3.4.1. Overall price reduction demands
    • 3.4.2. Differences between US and Europe
  • 3.5. Approach to quality
    • 3.5.1. Supplier and customer perception
    • 3.5.2. Supplier quality and capability assessment in PPDP
    • 3.5.3. Suppliers' concerns
  • 3.6. Research and Development
    • 3.6.1. R&D organisation and spending
    • 3.6.2. Traditional powertrain technologies
    • 3.6.3. Ford' s approach to electrification
    • 3.6.4. Insourcing and Outsourcing in electric programs
    • 3.6.5. Technology focus
    • 3.6.6. Access to supplier technology
    • 3.6.7. Intellectual property management
  • 3.7. Modules and Systems
    • 3.7.1. Cockpit modules
    • 3.7.2. Seat modules
    • 3.7.3. Front-End Modules
    • 3.7.4. Door Modules

4. OEM SURVEY RESULTS FOR FORD

  • 4.1. Negotiations
    • 4.1.1. Time-consuming negotiations
    • 4.1.2. Demands for price reductions
    • 4.1.3. Rating of payment terms
    • 4.1.4. Keeping agreements on price
    • 4.1.5. Willingness to reward cost-saving ideas
    • 4.1.6. Willingness to pay for development costs
  • 4.2. Quality
    • 4.2.1. Demands to achieve high quality
    • 4.2.2. Demands for testing and validation
    • 4.2.3. Product liability guarantees
  • 4.3. Technology
    • 4.3.1. Demands for best product technology
    • 4.3.2. Technical competence
    • 4.3.3. Opportunities for return on investment (ROI)
    • 4.3.4. Use of modules
    • 4.3.5. Development of systems with suppliers
  • 4.4. Organisation
    • 4.4.1. Quality of communication
    • 4.4.2. Support in avoiding problems
    • 4.4.3. Quality and stability of volume planning
    • 4.4.4. Preparation for model launch
    • 4.4.5. Level of redesign required
  • 4.5. Trust
    • 4.5.1. Trust in commercial partnerships
    • 4.5.2. Level of protection for suppliers' intellectual property (IP)
  • 4.6. Attractiveness
    • 4.6.1. Attractiveness
    • 4.6.2. Long-term prospects
    • 4.6.3. Openness to new suppliers
    • 4.6.4. More or less business expected

5. SWOT ANALYSIS OF SUPPLYING FORD

6. GLOBAL FOOTPRINT

7. FORWARD MODEL PROGRAM

8. MAJOR SUPPLIERS BY COMPONENT SECTOR

  • 8.1. Chassis/Underbody
  • 8.2. Electrical/Electronic
  • 8.3. Exterior
  • 8.4. Interior
  • 8.5. Powertrain

Figures

  • Figure 1: Ford worldwide sales breakdown 2009-2014 (Source: IHS Global Insight)
  • Figure 2: Ford share price (F.N) (Source: Yahoo Finance)
  • Figure 3: Ford' s production forecast per production region (Source: IHS Global Insight)
  • Figure 4: Split of Ford Purchasing Turnover as of 2006 (Source: Ford)
  • Figure 5: Ford Purchasing Organisation Chart
  • Figure 9: R&D expenditure vs. revenues (Source: Various)
  • Figure 6: Ford global powertrain showroom availability (Source:Ford)
  • Figure 7: Ford powertrain technology migration path (Source:Ford)
  • Figure 8: Ford safety technologies outlook (Source: Ford)

Table

  • Table 1: Ford Motor Co. selected financial Data (Source: Reuters, Moody' s, Fitch, S&P)
  • Table 2: Ford ABF requirements (Source: Ford)
  • Table 3: Ford' ABF critical commodities
  • Table 4: Aligned Business Framework suppliers
  • Table 5: Ford APQP Milestones timing and significance
  • Table 6: Ford APQP Elements timing (for all new vehicle)
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