Question
Ford's Chicago assembly plant includes an adjacent supplier campus. This campus houses 12 suppliers providing 60% of the assembly plant's inventory. The closeness of these
Ford's Chicago assembly plant includes an adjacent supplier campus. This campus houses 12 suppliers providing 60% of the assembly plant's inventory. The closeness of these suppliers enabled improved coordination and timing. Ford experienced a significant reduction in the distance vehicle components traveled, thereby shortening the supply chain. The worldwide supply chain is characterized by just-in-time component arrivals.
The products produced by the suppliers residing in the supplier campus are integrated assemblies delivered in sequence on ajust-in-time basis. It is this ability to work cooperatively with suppliers to manage the flow of materials that enabled Ford to improve the supply chain.
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