Ford Motor Company continues to improve their sustainability performance throughout its supply chain system, through their advanced supplier partnership initiatives.
The automobile supply industry can be one of the most complicated of any industry. Automakers like Ford rely on thousands of tier-one suppliers to provide the materials, parts and services to make its final products. Since, many suppliers serve multiple automakers, and those suppliers, in turn, have multiple suppliers. There are many other industries like the electronics industry who are also interlinked to the automotive supply chain. You may see in upwards of 10 levels of suppliers between automakers, and the sources of raw materials used in this manufacturing process. Because of the inter-connections of these auto suppliers makes it unusually difficult to efficiently manage this part of the business and any sustainability issues it hopes to achieve.
To efficiently engage suppliers throughout the supply chain, Ford took a three-phase approach; addressing individual facilities, in training and capabilities, which are the fundamental basics of Ford's sustainability program that is supported by evaluations of individual tier-one supplier factories. Ford is building stronger supplier relationships and leveraging corporate engagement with innovative supplier partnerships, called the Aligned Business Framework (ABF), to enhance supplier ownership at the corporate level for supply chain sustainability management, and performance systems among its suppliers throughout the supply chain.
Ford is also driving partnerships and industry tool development for global supply sustainability issues through industry and cross-industry p...
... middle of paper ...
...ainability, human resources, legal, environmental health and safety, purchasing. Executive management or the board of directors, with facilitation by Ford meets to discuss and implement or support these individuals or regions with in-person meetings and discussions.
By leveraging suppliers, the company can manage human rights and environmental responsibility issues within the supply chain more effectively and efficient manner.
Ford's view can be shared and is embedded in each supplier’s ownership for social and environmental issues seen throughout the supply chain, which leads to developing of more sustainability improvement processes being implemented throughout the automotive supply chain.
Newton, Jonathan W. "Responsible Supply Management." Inside Supply Chain Management (2013): Vol. 24, No. 3, page 32.
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