FORD_SRDE_2018

40 Suppliers’ commitment is an important factor for the continuity of our business. Therefore, we implement various practices to increase cooperation by improving communication with the suppliers. Q1 – NUMBER 1 IN QUALITY Global Ford Q1 (Number 1 in Quality) Certification system includes comprehensive environmental and social criteria along with criteria related to quality and this certificate becomes an indication for suppliers who meet the highest standards. Suppliers with these standards have a higher competitive power and they get the opportunity to work with various global companies. • Among Q1 requirements, there is IATF 16949 Automotive Quality Management System certificate. This certificate enables efficiency within production processes and contributes in the reduction of carbon footprint. • The number of suppliers we audited this year according to the environmental and social criteria was 137. We hold field visits to suppliers with Q1 certificate once a year, this period is every six months for suppliers who have not yet obtained Q1 certificate. SUPPLIER RELATIONS Suppliers’ commitment is an important factor for the continuity of our business. Therefore, we implement various practices to increase cooperation by improving communication with the suppliers. • With the “Supplier Suggestion System” we have initiated this year, we collect the suggestions of our suppliers in the digital environment and create projects for the ones that are suitable by cooperating with the suppliers. Thanks to this system, we increase process efficiency. We collected 26 suggestions through the system and achieved a reduction of approximately USD 20,000 in cost. In the following period, we will organise informative training to encourage suppliers to actively use the system and to increase the number of suggestions. • We hold training and improvement activities with our suppliers in various fields including quality, supply, efficiency, human rights and work environment, gender equality, and environmental performance and realise joint projects. Hence, we provided a total of 1,094 hours of training to our suppliers in various fields. We continue providing training to our suppliers through different channels such as conferences, in- class and online training. • We follow Supplier Commitment Survey in which Automotive Industry’s Main Companies are assessed by the suppliers via a survey conducted by Automotive Manufacturers Association every year. We regularly organise Supplier Commitment Workshops in order to share the survey results with suppliers and create action plans with regard to feedbacks. • We organise an annual Manufacturer Award Ceremony and present awards to our successful suppliers following an assessment considering the criteria set based on data and feedbacks in quality, delivery, cost, and effective communication. Similarly, we continue supporting our local suppliers while they improve their business potentials by encouraging them to attend the meetings of Supplier Summit organised by the Ford Europe. The rate of parts suppliers with Q1 certificates in Turkey is 78.2%. SUSTAINABLE AND PROFITABLE GROWTH