Structure Of Supply Chain : Ford Motor Company

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Structure of supply chain Ford Motor Company manufactures and distributes vehicles across all the 6 continents. The manufacturing is carried out at 70 different plants of varying capacity across the world. Ford has relationships with over 1,600 production suppliers operating at over 4,600 manufacturing sites that produce 130,000 parts for inclusion in vehicles that the company sells. In addition, Ford purchases other non-production supplies, including services, marketing, construction, computers, industrial materials, health care and machinery from over 9,000 suppliers. There are as many 10 tiers of suppliers between Ford and the source of the raw material. Overall, the company spends over $65 billion globally per year on production and non-production purchases. ( Such an extensive, broad and global supply chain provides opportunities and risks. Opportunities arise from the fact that there are a lot points and places and options that could be changed to cut costs or to improve the quality of production. Similarly there are a lot more risks associated as many different things can go wrong. This is a reason that the SCM at Ford has been under constant change over the years to give them a competitive edge. Nearly from the beginning Ford has been a leader in supply chain. In the early part of the 20th century when there was shortage of materials on account of the world war, it resulted in stalling of the assembly lines.
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