Ford's Second from last in Supplier's RelationsI'm very familiar with that situation having worked outsourcing contracts for a couple of decades. Feuding spouses who are mad at each other but still have to live together. I disagree that Ford has no choices. They could get multiple suppliers (yes that causes more work but it also means you're not solely dependent on one supplier). They could just live with the slightly higher cost and cut other areas or just live with the higher costs in exchange for fewer warranty costs in the future (but we both know managers prefer to focus on short term cost not long term cost). They could approach it as more of a partnership with shared goals, shared costs and shared gains rather than adversaries. Give them incentives for good performance.
Maybe they need to insource more parts or do more joint ventures with US suppliers. Solutions are out there but it's easier to just beat up the suppliers. And the beatings will continue until morale improves.Wed, 22 May 2024 11:37:57 +0000
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