Case Study: How Ford has Re-invented its Supply Chain Strategy Dan Georgescu, Global Purchasing, Ford Motor Company of Canada
The financial crisis that affected the global economy in 2008 started much earlier in the automotive sector. In 2005, both Visteon and Delphi (which were spun off by Ford and GM in 2000) were contemplating bankruptcy. Other large Tier 1 suppliers were in financial distress as well. If these parts suppliers would have collapsed, all of the North American automakers would have faced paralyzing production disruptions and financial repercussions. The North American OEMs were in no better shape than the Tier 1 suppliers, from a financial perspective.
Ford realized that it needed the support of its suppliers in order to survive in the fiercely competitive North American Market. Ford decided to re-invent its supply chain strategy to take the supplier relationships "to a different and new level" to ensure consistent production, reduce its costs, and create long-lasting partnerships with its suppliers. As a result, Ford was the only North American OEM that did not go bankrupt and did not require government assistance during the last credit crisis.
Learning Outcomes:
By the end of the presentation the participants should be able to
Explain the business case for improving supplier relations in the North American automotive industry
Customize existing supplier relation strategies or create new ones to rapidly improve the benefits of preferred customer status
Prioritize the implementation of a supplier relation improvement strategy and create a timeline for implementation
Dan Georgescu currently works in Global Purchasing for Ford Motor Company. He is in charge of supplier development for the over 600 suppliers of the Oakville Assembly Complex. Dan is a member of the Accreditation Review Panel of the National Accreditation Program of the Canadian Sector Council for Supply Chain (CSCSC); he is a senior educational consultant for the Purchasing Management Association of Canada, and he serves as a member of the Engineering Programs Advisory Committee at Sheridan College. Dan teaches in the Supply Chain Management at Humber College, and in the Manufacturing Management Program at Sheridan College. He graduated with the Gold Medal for Academic Excellence from the Wilfrid Laurier MBA program in 2006. He holds a Master of Science Degree in Engineering and he is a certified Six Sigma Black Belt and a Professional Engineer. Dan published "Making Supply Chain Design the Rational Differentiating Characteristic of the OEMs" in the International Journal of Production Research on February 23, 2007. His research interests are Knowledge Propagation in the Value Chain and Supplier Development as a Sustainable Competitive Advantage.
________________________________________
The International Symposium on Supply Chain Management - in Toronto, ON
Innovation - Panel Discussion
There is no substitute for innovation that matches the human imagination. However, innovative thinking is not second-nature to most, and like most skills it needs to be fostered and developed. In the area of innovative graduates, there is currently a gap between what universities supply and what companies need; traditional education leads not to innovative behaviour but to extensions of past innovation. This panel discusses the skills and competencies that will unlock innovation in today's graduates.
Simon Brown, Executive Vice President, PMMS Consulting Group Inc.
Dan Georgescu, Global Purchasing, Ford Motor Company of Canada
Nicholas Little, Assistant Director of Executive Development Programs and The Global Procurement and Supply Chain Benchmarking Initiative of the Eli Broad Graduate School of Management, Michigan State University
________________________________________
The 85th PMAC National Conference in Regina, SK
Speaker Engagement - 85th PMAC National Conference - Regina, Saskatchewan
F3 - Concurrent Session - Friday, June 11 - 11:50 am – 12:50 pm
Supply Chain Management News 1 - June 2010
Supply Chain Management News is a publication of the Global Supply Chain (GlobalSC.blogspot.com)
PMAC National Conference
The PMAC National Conference is Canada’s premier event for supply chain management professionals – and the largest of its kind. More than 500 of the country’s top procurement and supply chain management decision-makers gather once a year to learn the latest developments and best practices in the profession.
Through education and networking, this is the ultimate opportunity for PMAC members to gain a competitive advantage for their organizations and their careers in the changing marketplace.2010 National Conference
The Winds of Change have swept uncertainty into our economy, but hidden in uncertainty are opportunities. Learn how to deal with change and maximize your opportunities in the prevailing winds.
