Procurement Process of Ford Motor Company

-Ashish Dahiya (A00159728)

Ford is a vast company having its operation spread up in the globe. It is an

American multinational automobile manufacturer.
Ford is the 2nd largest automaker in the US which has a number of suppliers
incorporating many known indirect suppliers too.
Ford’s main suppliers are Flex-N-Gate Seeburn, NHK Spring and Valeo Electric
and electronic systems.
Ford’s specification sheet basically defines the applicability for the software
that is different from the hardware, design record, reporting, identification and
marking of materials, control plan and measurement system analysis studies.
Then comes it’ potential suppliers which possibly could be FM &SP (Facilities,
Materials and Services purchasing). They are non-production purchasing
companies which means they are companies which purchases items that are
not directly used in the making of the vehicle. Ford will have to select between
a list of approximately 9000 potential buyers available.
After that comes the request for quotation for that Ford company had made
online forms available for whosoever is interested in becoming the Ford
company’s suppliers can fill out that form and request for quotation through it.

Then ford’s due diligence imitates ford’s supplier code of conduct. It means the
company requires it’s suppliers to be a part of the sub-tier suppliers and
demonstrate full transparency.
Now the pre-production process starts in the cycle, here the first step is the
factory audit wherein the audit committee monitors the Ford company’s
financial reporting process and prepares a report to present in front of the
Board of Directors. And while this process is underway and any corrections are
suggested to me made should be done with follow-up corrective measures
offered by the audit committee.
The Ford company has a control plan named as the prototype build control
plan. It is basically a description of the dimensional measurements, material
and functional tests that will be happening while the confirmation of the proto
type plan.
The supply chain plays the most important part in the order management of
the Ford Company. Ford company has adapted the made-to-order process for
it’s manufacturing because of the supply imbalance which is going on form the
past few years and id still depicted to be like so for the next few years too. Now,
the production of the ford vehicles entirely depends on the customer’s
demands.
Henry Ford, the founder of the Ford company believed that the use of moving
assembly line made it feasible for the workers as it allowed for the work to be
taken to the worker rather than the workers moving to and around the vehicle
to work on it because of this now the ford company manufactures it’s products
step-by-step to avoid any mishap during the entire procedure.
In the end the logistics management of the Ford company is handled by a very
known and leading logistics known as the PENSKE Logistics. It also offers the
company a really wide range of supply chain services.