Ford slashes suppliers by 35 per cent

13 August 2013

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14 August 2013 | Will Green 

Automotive giant Ford has announced an updated supplier framework that will see the number of firms it deals with cut by 35 per cent.

 

The Aligned Business Framework 2.0 (ABF) aims to strengthen links with the company’s preferred suppliers to bring the latest technologies to consumers more quickly, while consolidating the rest of the supplier base. 

Under the ABF, the number of global suppliers will be cut from 1,150 to 750, with the proportion of business going to Ford’s 104 ABF suppliers increasing from the current 65 per cent to 70 per cent.

 

Birgit Behrendt, vice president of global programmes and purchasing operations, said: “The evolution of the ABF helps us to further integrate with our product development team and encourages our suppliers to bring their best and most innovative technologies to Ford. 

“As we continue to consolidate our supply base, we plan to increase the amount of business we’re conducting with ABF suppliers to around 70 per cent.”

 

The ABF was launched in 2005 with strategic suppliers to “increase mutual profitability, improve quality and drive innovation, and to help us encourage shared commitment to sustainability goals”. In that first year, 34 per cent of global business went to ABF suppliers.

 

Ford reported pre-tax profits of $4.7 billion (£3 billion) and revenues of $73.9 billion (£47.7 billion) in the first half of 2013, up from profits of $4.1 billion (£2.7 billion) and revenues of $65.7 billion (£42.4 billion) in the same period of 2012.

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