FORD_SRDE_2018

SUSTAINABILITY REPORT 2018 39 We monitor the conformity of our suppliers to standards in quality and operations through comprehensive audits. For serial production, we work together with a total of 468 suppliers, 285 of which are domestic and 183 are international. In 2018, we made TRY 14.5 million worth of purchases for vehicle production from 468 suppliers. Hence, we supply parts from 40 countries in Europe, America, Asia and Africa. SUSTAINABILITY IN THE SUPPLY CHAIN Our sector involves a long and complex supply chain. Vehicles consist of various parts, components and engines and we have various suppliers from whom we purchase various parts, materials, services and raw materials. We are committed to our approach of developing together with our suppliers and we consider locality, sustainability and digitalisation as focal points in our supply chain. We cooperate with our suppliers to ensure efficiency, quality, and high social, environmental and ethical standards. As for after-sale spare parts, facility investments and services, we made TRY 1.3 billion worth of purchases from 1,622 suppliers. In 2018, we made TRY 15.9 million worth of purchases from 2,098 suppliers. SUPPLIER EVALUATION SYSTEM We monitor the conformity of our suppliers to standards in quality and operations through comprehensive audits. We contribute to the development of our suppliers through five different audits and field visits. Q1 Audits We performmain audits over Q1 – Number 1 in Quality certification system. Capacity Audits We perform audits as part of Ford Motor Company global capacity controls. Production Problems We organise field visits to resolve problems and challenges faced by the suppliers during the production process. Performance Improvement We identify suppliers that are open to improvement over Ford Motor Company’s global system and we work on auditing and performance improvement over certain criteria. Risk Management We plan supplier visits for natural disasters, fires and syndicate related risks and take actions to prevent probable risks. FOCUSING ON LOCAL ADDED VALUE One of our material issues in the supply chain is to create added value through local supply. More than half of the materials we supply for our production come from local suppliers. And 80% of these products come from suppliers within the 100 km radius from us. By giving priority to local products, we reduce environmental footprint, get cost advantage and support local development and socio-economic development. We have the goal to maximise our added value by increasing the rate of local products throughout the value chain.