FORD SUPPLIER MANAGEMENT Viorel Nuta Senior Purchasing Manager Romania Ford of Europe October 18, 2018
Agenda Ford Overview Supplier Management Overview Production Purchasing Indirect Purchasing Supplier Localization Process Ford Craiova Plant Overview SLIDE 2
Our Foundation Saturday Evening Post Jan 1925 Ford Is The Pioneer Of Personal Mobility Making People s Lives Better By Changing The Way The World Moves SLIDE 3
Ford Worldwide Key Figures Head Quarter: Dearborn 67 plants worldwide 199.000 employees 4,700 Suppliers 6,6 m units sold Market on all continents SLIDE 4
Ford Locations In Europe SLIDE 5 Head Quarter: Cologne 18 Ford facilities ~ 68.000 employees 1,6m units sold in 2017
Business Importance Of Our Suppliers Supplier Ford 60-70% 30-40% Our Suppliers Are Critical To Continually Improving Product Quality and Achieving The Lowest Cost SLIDE 6 6
Ford of Europe Purchasing Structure Purchasing FORD Production Material Purchasing FORD Indirect Purchasing FORD FCSD Purchasing (Spare Parts) Production Material Germany, United Kingdom, Spain, Russia Program Purchasing Germany, United Kingdom, Romania, Russia Quality (STA) Various European Locations Non Production Material Germany, United Kingdom, Romania, Spain, Russia Germany, United Kingdom, Romania European Team Integrated To A Wider Global Organization SLIDE 7 7
Commodity Purchasing Procurement of components and materials that are mounted on the vehicle Sourcing and buying Managing Supplier Relationships Deliver Best Cost at Job # 1 Delivering Year over Year cost reductions Close co-operation with other areas, especially Product Development Proactive financial risk monitoring of supply base and managing distressed suppliers Management of shortages SLIDE 8
Indirect Purchasing Procurement of everything that is NOT mounted into the vehicle (Machinery and IT, Construction works, Services, Marketing & Sales, Industrial Materials, Transportation Services) - Sourcing and buying - Managing of Supplier Relationship - Managing of Cost and Quality - Managing of distressed Suppliers SLIDE 9
Localization Process Suppliers sites to be evaluated/developed Purchasing Process Supplier Technical Assistance Process Cost analysis and Market Test - Business profile - Production capacities - Logistic capabilities - Opportunities for development - Business Terms and conditions - Management commitment for continuous improvement - Manufacturing Capabililties - Quality processes and systems Commercial & Technical Evaluation and Common Plan Prior To Market Test SLIDE 10
Become A Ford Supplier NEXT STEPS For further information on becoming a Ford supplier, please visit: https://fsp.portal.covisint.com/web/portal/potentialsuppliers (Online Supplier Portal) Or contact vnuta@ford.com SLIDE 11
FORD CRAIOVA PLANT
Craiova On The Map 90 Km From The Bulgarian-Romanian Border SLIDE 13
History Key facts 1976 - JVC: CITROEN with the Romanian Government 1994 - JVC: Daewoo, Korea with the Romanian Government 2006 - JV with Daewoo terminated acquired by Romanian Government 2008 Ford takeover Automobile Craiova SA 2010 Ford - 100% owner of Automobile Craiova SA SLIDE 14 2
Press Shop 4 fully automated press lines Slide 15-10
Body Shop New Flexible, Fully Automated (510 robots) Slide 16-10
Paint Shop Latest 3 WET Technology Slide 17-10
Trim & Final Flexible Line According to Latest Ford Assembly Standards Slide 18-10
Engine Plant Cylinder Block, Head and Crankshaft Machining Line & Flexible Assembly Line Slide 19-10
Craiova Plant Products Eco Sport FOX Engines 1.0 L Second Model Planned To Roll Out SLIDE 20
Thank you! SLIDE 21