Sustainable and Responsible Supply Management Essay

954 Words 4 Pages
Sustainable and Responsible Supply Management

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
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Building strong relationships with suppliers is based on communication, clear and consistent expectations, and requirements to the processes. In 2005, Ford introduced the ABF with its strategic suppliers to strengthen collaboration, increase mutual profitability, improve quality, drive innovation and help ensure a shared commitment to sustainability goals. (Newton)
With these new joint agreements with ABF suppliers Ford systematically influences specific business obligations. The network includes 102 supplier companies that represent 65 percent of Ford's annual total global buy of US$75 billion, up from 34 percent in 2006. (Newton)
These include long-term sourcing agreements, improved parts cohesion, increased communication among all suppliers for products and manufacturing parts, and increased communications in forecasting information. This also includes data transparency among all suppliers, and partners, continued commitments to minority groups, and other enterprises that bring leading-edge technology and innovation to Ford.
One example is to convert metal components to recycled plastic where scientifically possible, and worked with suppliers to create custom-made air intake manifolds that include recycled resins. Initiatives like these result in reducing the environmental impact throughout the life cycle of the vehicles by reducing the weight of the vehicle, better fuel economy and using recycled

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