Suppliers talk, Ford doesn't listen (or care). Widely known that ABF (anybody but Ford) exists for sharing of new technology and Ford Purchasing continues to damage relationships.
Results of the 21st annual North American Automotive OEM - Supplier Working Relations Index® (WRI®) Study released today by Plante Moran show that in spite of the serious challenges facing automakers and their suppliers this past year, four of the six major U.S. and Japanese automakers improved their scores. Two automakers worsened.
The 2021 NA Automotive OEM Buyer – Supplier Working Relations Index shows Toyota and Honda remaining in first and second place overall, with General Motors and Nissan improving significantly, and Ford and FCA/Stellantis dropping significantly.
New this year is a scoring of the six automakers’ purchasing organizations “effectiveness,” that is, how quickly various issues are resolved between the automaker and supplier or their “throughput.” In this ranking, Honda was the top scorer, with Toyota a close second. The others followed the 2021 rankings.
Trust and communication are among the most important factors in Working Relations. This year, Toyota, General Motors, and Nissan all improved somewhat, with Honda holding steady, and Ford and FCA/Stellantis dropping.
The Working Relations Index Study has shown conclusively over the years that the higher and OEM ranks on the Index, the greater the benefits the OEM receives from the supplier. This graph shows how “benefits received” closely tracks “trust & communication.”
One of the specific benefits an automaker receives from its supplier is new innovation and technology. This graph shows the supplier’s willingness to invest in new technology, with the expectation (based on trust) of receiving new business.
The OEM buyer could be considered the most important link in the Working Relations Index score. He or she is the individual that interfaces with the supplier almost daily and has a direct effect on the relationship. The Buyer Characteristics Index (BCI) ranks the OEM’s buyers on a host of key attributes including product knowledge, communication, integrity, and trust. In the graph above, GM ranked number 1, with Toyota and Honda a very close second and third.