Supply Chain

Ford’s suppliers are critical allies in helping us to achieve success in the marketplace and meet our sustainability goals. The basis of our work with suppliers is the Ford Code of Human Rights, Basic Working Conditions and Corporate Responsibility, which applies to our own operations as well as our $100 billion supply chain.

Our Approach to Conflict Minerals

To the extent conflict minerals (tin, tungsten, tantalum and gold) are contained in our products, it is Ford’s goal to use DRC conflict-free minerals while continuing to support responsible in-region mineral sourcing from the Democratic Republic of the Congo (DRC) and adjoining countries. Our suppliers are expected to conduct due diligence to understand the source of the conflict minerals used in Ford products, source responsibly, and not knowingly provide products containing minerals that contribute to conflict.

Our Goals and Performance Progress

Goal: Encourage our key production suppliers to introduce codes of conduct aligned with international standards and Ford’s Code of Human Rights, Basic Working Conditions and Corporate Responsibility; develop robust management and compliance systems to support their codes; and extend these expectations to their own suppliers.

Approximately 80% of our production Aligned Business Framework (ABF) suppliers have demonstrated that they have codes of conduct in place that are aligned with international standards. Approximately 45% of our ABF production suppliers have demonstrated that they have met all three Ford milestones.

Goal: Help suppliers build their capacity to manage supply chain sustainability issues through factory-level and management training on working conditions, human rights, ethical business practices and environmental responsibility; and require participating suppliers to cascade training information to their own employees and suppliers.

In 2013, we trained more than 230 Ford suppliers in Brazil, Mexico, Turkey, Romania and South Africa.¹ The global total of Ford suppliers trained since program inception is nearly 2,100.²

Goal: Assess the carbon footprint of Ford’s supply chain to inform the development of a broad-based carbon management approach for our supply chain.

We surveyed 145 suppliers in 2013 (up from 135 in 2012, 128 in 2011 and 35 in 2010) regarding greenhouse gas emissions, and achieved an 89% voluntary response rate.

Goal: Source at least 10% of U.S. purchases from minority- and women-owned businesses annually.

We purchased $6.5 billion in goods and services from approximately 250 minority-owned suppliers and $1.8 billion in goods and services from more than 150 women-owned businesses, our fourth consecutive year of improvement.

See more at Ford’s Goals, Commitments and Status: Supply Chain

Assessing Suppliers

Human rights and working conditions is a prime area of focus for our sustainability work with suppliers. Since 2003, we have conducted more than 900 third-party audits of existing and prospective Tier 1 suppliers in 21 countries on issues relating to ethics and human rights and working conditions.

Ford’s Approach to Creating a Sustainable Supply Chain

We promote long-term relationships with our suppliers and seek alignment with them on sustainability-related issues such as human rights, working conditions and environmental responsibility. We leverage our supply chain to make a positive impact in the markets in which we do business.

Voice: Kelly Katynski

Supply Chain Sustainability Manager, Conflict Minerals Compliance, Ford Motor Company

“Not all mining from the Congo is contributing to conflict. There are many responsibly run operations whose workers depend on mining of these minerals to support their families. It is important that actions taken by Ford and our suppliers do not disadvantage responsible mining operations in the region.”

Logistics Operations

Ford’s physical logistics operations provide the safe and efficient transport of parts from our suppliers to our manufacturing plants and of finished vehicles from the end of our assembly lines to our dealerships. Although logistics accounts for a relatively small percentage of our vehicles’ total lifecycle emissions, we are working hard to maximize the efficiency of these operations to reduce their environmental impact.

Supplier Diversity

Ford launched its Supplier Diversity Development program in 1978 with the goals of supporting minority- and women-owned businesses, creating business opportunities for diverse suppliers to grow into profitable enterprises, and further strengthening the Ford supplier network to reflect the company’s workforce and customer base. Since that time, we have sourced more than $70 billion to minority-, women- and veteran-owned businesses.

2013 Highlights

485,000 of our suppliers’ workers have been impacted by our supply chain sustainability training program since its inception in 2006.

6 the number of work groups Ford chairs or co-chairs at the Automotive Industry Action Group, or AIAG, a North American, member-based, nonprofit industry group specializing in supply chain issues.

Trainings in Brazil, Mexico, Turkey and South Africa were joint industry trainings coordinated through AIAG. Trainings in Romania were held in conjunction with CSR Europe.
This figure includes suppliers trained in Ford-led and joint industry trainings.