Ford Production Woes Teach Supply Chain Lessons

On May 9, Ford hit the headlines when it had to halt production on its popular F-150 pickup truck. The issue was caused by a factory fire at one a supplier plant on May 2nd.  The automaker wasn’t alone as the fire also slowed production for General Motors, Fiat Chrysler and Mercedes as well. Ford was forced to shut down the truck side of its Kansas City Assembly Plant in Missouri, which sent 3,400 workers home, according to a report in the Detroit Free Press. Workers were also sent home from the the Kansas City Assembly Plant and the Kentucky Truck Plant in Louisville, affecting Ford 7,600 employees in all. The shutdown was linked to a parts shortage caused by the fire at Meridian Magnesium Products in Eaton Rapids, said Kelli Felker, Ford spokeswoman. For Ford, Meridian Magnesium was a key supplier, as the company bought about one-third of the parts built by Meridian. “The Ford shutdown is one more example that even with a pretty solid supply chain infrastructure and planning in place, you can still have stuff happen,” said Ronnie Gibson, vice president, innovation for insurance provider FM Global. “Our collective task is to try to understand a supply chain at level and depth that those sleepers don’t take us by surprise.”