Ford's management of supply chain?

[Silver-Bolt]

Supply chain issues are real, but so is incompetence. Labor issues are real, and those issues have impacted supply chain. My work environment is much simpler, and my lead times have gone from 2 weeks to 16 weeks. I will order 1200 widgets, and 200 will arrive. Vendors don't get the goods to create the widget I need.

In my simple world, supply chain and inventory has gone from a monthly and weekly conversations to a daily or hourly management issue.

Ford seems to have mismanaged very significant problems. These mistakes would be hidden during normal times, but are magnified today. A group of 100,000 staring at you while you make your mistakes, that makes it more obvious as well. If it were some random Ford Edge issue, nobody would care, the mistakes wouldn't be noticed by anybody outside Ford.

Compounding these issues is our government paying people to not work. The combined income from unemployment and government "stimulus" in the Portland area is $56k/yr. The trickle down from that is we can't get works needed to produce the parts that Ford and many other companies need. As part of the supply chain for many large companies that include automotive, military, aerospace, medical, etc, I don't see this improving in the next 1-2 years. I do not think that we have hit bottom yet. It is going to get far uglier before we see the turnaround.

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[rugbysecondrow]

Compounding these issues is our government paying people to not work. The combined income from unemployment and government "stimulus" in the Portland area is $56k/yr. The trickle down from that is we can't get works needed to produce the parts that Ford and many other companies need. As part of the supply chain for many large companies that include automotive, military, aerospace, medical, etc, I don't see this improving in the next 1-2 years. I do not think that we have hit bottom yet. It is going to get far uglier before we see the turnaround.

I don't think we have either.

This is what laypeople don't understand.

The cost of labor increasing, the total cost of inventory/supply chain (prices, time, and cash/inventory on hand) = increase in prices, increase in lead times, decrease in services.

Factor the cost of uncertainty and how businesses are trying to model these unpredictable conditions, and it leads to inefficiency and a poor consumer environment.

 

[FastAndLight]

Supply chain issues are real, but so is incompetence. Labor issues are real, and those issues have impacted supply chain. My work environment is much simpler, and my lead times have gone from 2 weeks to 16 weeks. I will order 1200 widgets, and 200 will arrive. Vendors don't get the goods to create the widget I need.

In my simple world, supply chain and inventory has gone from a monthly and weekly conversations to a daily or hourly management issue.

Ford seems to have mismanaged very significant problems. These mistakes would be hidden during normal times, but are magnified today. A group of 100,000 staring at you while you make your mistakes, that makes it more obvious as well. If it were some random Ford Edge issue, nobody would care, the mistakes wouldn't be noticed by anybody outside Ford.

This is exactly what I was thinking, but took 2 pages to say. Supply chain issues have brought to light the sheer incompetence and management rot at play in Ford.

 

[Silver-Bolt]

This is exactly what I was thinking, but took 2 pages to say. Supply chain issues have brought to light the sheer incompetence and management rot at play in Ford.

Actually what the supply chain issue has revealed is our dependence on foreign made materials and products. It starts with the shuttering of American raw material mills. Steel and aluminum manufacturing is a fraction of what it used to be and what it needs to be. Move to the chip issue, Ford is one of many that got bit by that one. How did so many manufacturers become reliant on a single source for chips? Now on to shipping. Shipping anything globally today is a nightmare. Containers that used to cost $2500-$3000 are now $10k-$20k. Add on top of that the actual shipping costs which have gone bananas. Transit times for overseas used to be 3-4 weeks dock to dock. Today 16-18 weeks (hopefully). One of my customers just paid $228k to air freight 12 pallets. It is ugly now and going to get worse.

 

[PrepVet]

This is exactly what I was thinking, but took 2 pages to say. Supply chain issues have brought to light the sheer incompetence and management rot at play in Ford.

I’m not saying Ford is awesome or great at the management level but what exactly are you referring that is being reveled at Ford?

 

[FastAndLight]

I’m not saying Ford is awesome or great at the management level but what exactly are you referring that is being reveled at Ford?

You had previously commented on your experience with the difficulties in manufacturing in the current environment.

I didn't mean to imply that you said anything directly about Ford. Sorry if it was seen that way.

What I was saying is that the current difficult environment has demonstrated how poor Ford's ability to plan, manage, scale, and handle unexpected outcomes in the manufacturing process is. To me, having learned about management and leadership in the USMC, those are all really the same thing, a failure of leadership at multiple levels.

 

[MayhemMike]

I just stopped by my dealer to change my order. I just changed color. Our sales rep read off a statement from Ford, that stated MIC and 2.7 motors orders will delay production. None of the other afore mentioned commodities were stressed in the notification. My two door 2.7 BL is still just a thought. Lol…..

 

[Snydermann]

I think Ford offered too many choices out of the gate. Good, better, best would have simplified the build process and parts management. With the personalization of each version from the factory, it makes it difficult to manufacture with any reasonable consistency.

I completely agree, half the models/options would have been more than enough for initial demand. Satisfy that demand, then add more choices.

 

[Obiwan]

I just stopped by my dealer to change my order. I just changed color. Our sales rep read off a statement from Ford, that stated MIC and 2.7 motors orders will delay production. None of the other afore mentioned commodities were stressed in the notification. My two door 2.7 BL is still just a thought. Lol…..

Interesting, so no mention of tow package, SAS, LUX, that sort of thing. Well I think it's going to be hard to convince folks to drop motor packages. You can't exactly add a larger motor later like purchasing a hard top down the road from Ford or from the aftermarket community.

Also an interesting thread in general outlining the manufacturing issues at Ford. In my opinion and as a business owner, you don't take money / orders from people if you can not deliver in a very reasonable time frame, say 1-3 months. If you can not keep up with demand you stop taking reservations, the end. Then you don't have upset customers, you have hopeful future customers. To take the orders without being able to deliver is only one thing, greed. It's taking your money now hoping they can keep you on the hook long enough that you don't go elsewhere and purchase any number of vehicles that are just as capable or cool, both gas and electric.

By spring/summer I see a lot of people losing interest and jumping ship to other products from other companies. Circle back around maybe, and maybe not, in a few years if electric vehicles haven't taken over by then.

One of the issues not mentioned in the previous threads is that Ford is taking reservations for multiple models it can not adequately produce. Their electric line will need just as many chips and components as Tesla and Rivian and others and if they don't start making things in house they will never be the giant they once were.

If we were at war with China, (hypothetically) we would immediately scale up production of chips and components and anything else needed to be self reliant going forward. It's what we did in world war 1 and 2. We have the production capabilities in this country. If the work ethic and the manufacturing prowess we once led the world with returned it would truly be something.

 

[labattbluebronco]

Interesting, so no mention of tow package, SAS, LUX, that sort of thing. Well I think it's going to be hard to convince folks to drop motor packages. You can't exactly add a larger motor later like purchasing a hard top down the road from Ford or from the aftermarket community.

Also an interesting thread in general outlining the manufacturing issues at Ford. In my opinion and as a business owner, you don't take money / orders from people if you can not deliver in a very reasonable time frame, say 1-3 months. If you can not keep up with demand you stop taking reservations, the end. Then you don't have upset customers, you have hopeful future customers. To take the orders without being able to deliver is only one thing, greed. It's taking your money now hoping they can keep you on the hook long enough that you don't go elsewhere and purchase any number of vehicles that are just as capable or cool, both gas and electric.

By spring/summer I see a lot of people losing interest and jumping ship to other products from other companies. Circle back around maybe, and maybe not, in a few years if electric vehicles haven't taken over by then.

One of the issues not mentioned in the previous threads is that Ford is taking reservations for multiple models it can not adequately produce. Their electric line will need just as many chips and components as Tesla and Rivian and others and if they don't start making things in house they will never be the giant they once were.

If we were at war with China, (hypothetically) we would immediately scale up production of chips and components and anything else needed to be self reliant going forward. It's what we did in world war 1 and 2. We have the production capabilities in this country. If the work ethic and the manufacturing prowess we once led the world with returned it would truly be something.

 

[labattbluebronco]

I too have found this discussion interesting and would like to add in my 2 cents. This doesn't seem to be a Ford only problem. My son recently purchased his first home and being recently retired, I told him I would take on the remodel project. I have run into supply issues, both material and labor. The windows were paid for and ordered April 2021 but nowhere to be seen let alone an ETA. Bought a couple lights from Home Depot, discovered 3 weeks later I needed a third, however, that light is no longer available (China made) so had to purchase a non-matching light. Roofer came out to estimate a repair or replacement of the roof within 24 hours of a phone call, however I've made 4 phone calls, two messages, and one email and can't get them to do the work. I can't even get on the "schedule"!

What have I done? I've adapted to the current situation. I ask for availability and expected shipping dates for any supplies that need to be ordered. I estimate my supply needs critically and buy based on need plus 10% to ensure items will be like kind (no more mismatched lights). I have self taught construction techniques with trial/error and the college of Youtube so I don't have to rely on sub-contractors to get it done.

I've learned a lot in this process. I can now lay tile, install laminate vinyl planks, replace water lines, plumb sinks, install sheetrock, rewire outlets/switches, etc. I understand how the supply chain gets broken if any of the links weaken. I am only dealing with one small project. I'm not defending Ford, but imagine their challenges are more than a 1000 times more difficult to manage than my little project.

I should have my son's house ready for him by the end of the year. I think I am a better person for having learned new skills. It is my hope the management of Ford learns from the Bronco rollout and uses their new knowledge to improve future product introductions. I will continue to wait for my Bronco to be built and am sure I will enjoy it for years to come.

 

[PrepVet]

You had previously commented on your experience with the difficulties in manufacturing in the current environment.

I didn't mean to imply that you said anything directly about Ford. Sorry if it was seen that way.

What I was saying is that the current difficult environment has demonstrated how poor Ford's ability to plan, manage, scale, and handle unexpected outcomes in the manufacturing process is. To me, having learned about management and leadership in the USMC, those are all really the same thing, a failure of leadership at multiple levels.

You had previously commented on your experience with the difficulties in manufacturing in the current environment.

I didn't mean to imply that you said anything directly about Ford. Sorry if it was seen that way.

What I was saying is that the current difficult environment has demonstrated how poor Ford's ability to plan, manage, scale, and handle unexpected outcomes in the manufacturing process is. To me, having learned about management and leadership in the USMC, those are all really the same thing, a failure of leadership at multiple levels.

I didn’t think you had said anything negatively about what I said. I was just looking for what is being seen as the fundamental problem at Ford. I agree the launch of the new Bronco has not gone well from the enthusiastic fan base at all. But I don’t know what is the rotten core people are referencing at Ford.

 

[sniffHound]

"Lead follow or get out of the way." Lee Iacocca

 

[Compta38]

I think Ford offered too many choices out of the gate. Good, better, best would have simplified the build process and parts management. With the personalization of each version from the factory, it makes it difficult to manufacture with any reasonable consistency.

I said this from the get go...there are trims that shouldn't even exist such as Big Bend. The difference between BB and base is essentially being able to add mid package. Why is that worthy of an entire trim? The same can be applied to BD and Badlands for their options groups. The disco that's exclusive to Badlands should have been a universal stand alone option.

 

[Silver-Bolt]

I said this from the get go...there are trims that shouldn't even exist such as Big Bend. The difference between BB and base is essentially being able to add mid package. Why is that worthy of an entire trim? The same can be applied to BD and Badlands for their options groups. The disco that's exclusive to Badlands should have been a universal stand alone option.

Three trims. Base-Mid-High. Base can only choose from the options available in option group "A". Mid can select options from group "A&B". Hight can select from "A,B,&C". My ideal would be the very old school of 1 version and all options are ala'carte.

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