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Perils With Having a Sole Supplier

05/10/2018 10:45 AM
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#1

Re: Perils With Having a Sole Supplier

05/10/2018 12:40 PM

It's all fine and good until somebody slips....then it's just a mess....

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#20
In reply to #1

Re: Perils With Having a Sole Supplier

05/11/2018 10:23 AM

It's all fine and good until somebody slips..And somebody always will !

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#2

Re: Perils With Having a Sole Supplier

05/10/2018 2:42 PM

Sometimes you must "single Source" as in when you use a patented product or part that is made by only one supplier, however ford really screwed up with this deal!!!

Don't they pay people to actually manage the "Supply Chain"??? Or was this a "Buddy Buddy" deal???

We purchase a specific 8 mm dia. wire rope and it is sold by only one manufacturer and they are in Belgium. Luckily we won't need any more of that specific wire rope for a while as we are receiving our last order soon and all the cranes will have new wire rope.

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#22
In reply to #2

Re: Perils With Having a Sole Supplier

05/12/2018 7:45 PM

And that will work just fine, until someone kinks it. Happened to the boat I was on. Couldn't deploy for 3 days.

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#3

Re: Perils With Having a Sole Supplier

05/10/2018 3:41 PM

When the Auto Companies source proprietary designs, they'll cast the net to a number of bidding Tier-1's, and best quality/price/delivery wins the business. The resulting relationship with the supplier is a sizeable one with launch costs, qualification builds, scheduling, etc.

Are there other companies Ford could have turned to? Sure, but flipping high volume production to someone else doesn't happen overnight. May be better for both to take a deep breath and let this supplier get back on its feet. Their support to Ford in quickly restoring the assembly line will determine whether they keep the business long-term.

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#4

Re: Perils With Having a Sole Supplier

05/10/2018 4:02 PM

In my opinion.. thia sounds like a 45/90 day problem.. and that's if things go very smoothly..

Can you say "skyrocketing insurance premiums for everyone"!

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#5
In reply to #4

Re: Perils With Having a Sole Supplier

05/10/2018 5:22 PM

Care to explain how you connect this with "skyrocketing insurance premiums for everyone"!

Ford has an 80 day supply of F150 in inventory.

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#6
In reply to #5

Re: Perils With Having a Sole Supplier

05/10/2018 6:02 PM

Even if insurance were to neatly take care of the problem. The knee jerk reaction is to add a little padding after any such disaster.

Everyone is a relative term.

It won't effect only insurance premiums either..

More will have to go up as a result. ..

In my opinion..

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#7
In reply to #6

Re: Perils With Having a Sole Supplier

05/10/2018 6:41 PM

How did you come by this knowledge?

Are you suggesting that these unforeseen situations are actually covered by insurance carriers?

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#11
In reply to #7

Re: Perils With Having a Sole Supplier

05/10/2018 8:19 PM

Those directly involved.. the manufacturer who had the fire will likely make an insurance claim to get up and running.

Seriously lyn. It's not rocket science

.. juaj like my insurance goes up if claims are high regardless of the fact that I made no claims personally.

Anything else about my comment you can't comprehend?

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#12
In reply to #11

Re: Perils With Having a Sole Supplier

05/10/2018 8:26 PM

Much. Your claims are purely speculation, not based in facts that are known.

Comprehension is not MY problem.

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#13
In reply to #12

Re: Perils With Having a Sole Supplier

05/10/2018 8:38 PM

What's your point?

Speculation is what's driving the market. Tesla.. Ford.. and your post.. you think?

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#8

Re: Perils With Having a Sole Supplier

05/10/2018 7:08 PM

It's not just Ford that is impacted....

..."In addition to Ford F-Series pickups, production of the Chrysler Pacifica minivan and GMC Savana and Chevrolet Express full-size vans has been impacted due to supply-chain disruptions caused by the fire. Meridian Magnesium Products, touted on the company website as the world’s largest supplier of magnesium die-cast components, is a unit of China’s Wanfeng Auto Holdings Group Co. Ltd. A Meridian representative did not respond to a Detroit News request for comment.

GM spokeswoman Kimberly Carpenter told The News on Wednesday the company has temporarily halted production of its full-size vans at its Wentzville, Missouri, plant. The Wentzville plant is the only facility that builds the GMC Savana and Chevrolet Express vans.

“GM Wentzville will continue to produce the popular midsize Chevrolet Colorado and GMC Canyon,” Carpenter said. “GM Purchasing and Supply Chain is working to resume full-size van production as quickly as possible.”

GM spokesman Jim Cain said the Detroit automaker has a “sufficient stock (of full-size vans) on the ground and in-transit” and does not expect an immediate impact on retail customers."...

https://www.detroitnews.com/story/business/autos/ford/2018/05/09/ford-trucks-production-halted/34718903/

Let the blame game begin....

Wait a minute,,,a sprinkler system in a magnesium plant? What?

What idiot would use water for fire suppression in a magnesium part factory??

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#9
In reply to #8

Re: Perils With Having a Sole Supplier

05/10/2018 7:36 PM

"What idiot would use water for fire suppression in a magnesium part factory??"

And, what group of idiots would approve, and insure, such a time bomb?

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#14
In reply to #8

Re: Perils With Having a Sole Supplier

05/10/2018 8:56 PM

Water pisses it off....

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#15
In reply to #14

Re: Perils With Having a Sole Supplier

05/10/2018 9:14 PM

You couldn't get me in the building.....haha

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#16
In reply to #15

Re: Perils With Having a Sole Supplier

05/10/2018 10:17 PM

I read that long ago that in England when German bombs dropped into basements and caught fire, they poured water on them to make them burn more rapidly.

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#17
In reply to #16

Re: Perils With Having a Sole Supplier

05/10/2018 11:36 PM

Random good read here...

"British rifleman Victor Gregg was being held as a PoW by the Germans in Dresden when the Allies bombed the city in 1945. He witnessed unimaginable carnage that brought him decades of mental turmoil. This is his eyewitness account of the firestorm he left behind"

https://www.independent.co.uk/news/world/world-history/dresden-bombing-70-years-on-a-survivor-recalls-the-horror-he-witnessed-in-the-german-city-10042770.html

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#18
In reply to #17

Re: Perils With Having a Sole Supplier

05/11/2018 1:21 AM

Yes, sadly we never learn.

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#10

Re: Perils With Having a Sole Supplier

05/10/2018 7:59 PM

Similar "problem" can occur within our military manufacturers...single-sourced items.

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#19

Re: Perils With Having a Sole Supplier

05/11/2018 2:07 AM

I am curious about the 'Black Swan' event description. I thought (and I think wiki backs me up) that 'Black Swan' events were outliers and unpredictable.

I would think that it is entirely predictable that if your soul supplier has a catastrophic (delastrophic) incident you will be in the black stuff!

As noted above by many it should be the job of the supply chain managers to determine how bad an incident they can accomodate at this sole suplier and how they will get production going again. They have 90 days inventory of finished F150s but it seems that the supply of radiator widgets was 'just in time' as all production is already shutting down. The space required for say 20 days supply of widgets might only be the space of a couple of finished trucks. Maybe thats just being wise after the event!

Yes the impact is severe and its likely to produce a lot of wise after the event analysis

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#21

Re: Perils With Having a Sole Supplier

05/11/2018 10:59 AM

I would like to see the risk management done before the decision was made to sole source.

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#23

Re: Perils With Having a Sole Supplier

05/13/2018 11:49 PM

I don't see what the big deal is. Looks like a win win for everyone.

Workers get a mini vacation and get paid. Insurance companies make money. Firemen get paid. The water company sells more water. Ford gets a tax write-off. Dealers get to jack up the price due to short supply. Other manufacturing plants, previously outbid, now get a piece of the action.

Except for consumers, then they are always getting screwed, cept'n this time they got a real reason to moan and groan.

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#24
In reply to #23

Re: Perils With Having a Sole Supplier

05/14/2018 12:13 AM

I'm not sure you are correct about, "Workers get a mini vacation and get paid."

Or, "Other manufacturing plants now get a piece of the action."

Or, "The water company sells more water."

Are there any sources you could cite?

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#25
In reply to #24

Re: Perils With Having a Sole Supplier

05/15/2018 8:51 AM

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#26
In reply to #24

Re: Perils With Having a Sole Supplier

05/15/2018 10:06 AM

A. Ford employees are union members. When the company mucks up, some workers are sent to other departments, some are sent home (source: personal union experience).

B. If you can't get what you want from Peter, you get it from Paul. Economics 101.

C. Normally you buy a cup of water, but now you need a whole pail full. More water used means more water to sell. Supply and demand - Business 101.

Then, you already know that. What was your question?

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#27
In reply to #26

Re: Perils With Having a Sole Supplier

05/15/2018 12:39 PM

A. My understanding was the Ford workers could apply for unemployment insurance.

B. Makes no sense.

C. Municipal taxes levied on businesses are used to cover the cost of fighting fires, AFAIK.

I have no questions for you.

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#28

Re: Perils With Having a Sole Supplier

05/17/2018 10:28 PM
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