Ford's Supply Chain Needs a Better Idea

Sept. 18, 2007
Ford ranked #4 in good supplier relationships -- behind Toyota, Honda and Nissan.

If you want to understand exactly why Ford Motor has seen its reputation and market share erode in recent years, all you need to do is talk to its suppliers. That's what automotive research firm Planning Perspectives did as part of its annual survey of working relations between the original equipment manufacturers and their suppliers.

In terms of which U.S. automakers suppliers prefer to do business with, the top three are Toyota, Honda and Nissan, whose parent companies, of course, are based in Japan.

No. 4 on the list is DaimlerChrysler (the sell-off of Chrysler to Cerberus occurred after the survey was conducted). Moving up one notch to fifth place this year is General Motors, and bringing up the rear at No. 6 out of six is Ford.

While both GM and Ford have launched efforts to improve relations with their suppliers in recent years, only GM's seems to be working, says John Henke Jr., president and CEO of Planning Perspectives. "The Ford program has been a disappointing failure," he says. "This is unfortunate because Ford more than ever is dependent on the support of its suppliers to help in its turnaround."

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About the Author

Dave Blanchard | Senior Director of Content

Focus: Supply Chain

Call: (941) 208-4370

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During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

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