Tier 2 Program
In 1993 Ford launched a 2nd Tier Program to increase opportunities for minority businesses. Under this program, Ford works with large corporate suppliers to assist them in establishing SDD Programs similar to Ford's. This effort is designed to create more opportunities for diverse owned businesses in the automotive industry. It is especially helpful for smaller diverse businesses that do not have the capacity to supply Ford and other manufacturers directly. The 2nd Tier Program continues to expand each year and now generates over $2 billion in Ford supply chain of diverse purchases by our Tier 1 suppliers. In addition, Ford added women and veteran-owned suppliers in the scope of our 2nd Tier Program.
Ford has launched in partnership with CVM Solutions, an interactive, state of the art, diversity reporting system called M-Tier. M-Tier supports Ford's role as a leader in supplier diversity. The purpose of M-Tier is two-fold:
- Capture diverse spend at all levels of Ford's value chain
- Assist Ford suppliers in the initiation of their own Tier 2 reporting programs
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1st Tier Supplier Expectations
Ford believes that everyone benefits when all businesses are afforded an opportunity to compete in the marketplace. We encourage our 1st Tier suppliers to establish a goal of purchasing at least 6% of all goods and services from certified minority business enterprises, 2% from certified women-owned business enterprises and 3% from certified veteran business. Suppliers who do not establish Supplier Diversity Development Programs containing 5 year M/W/VBE purchasing objectives, and demonstrate a record of achieving those goals, may place their business relationship with Ford Motor Company at risk. Ford believes that creating opportunities for M/W/VBE enterprises is an imperative and wishes to partner with suppliers who share this philosophy.
Ford Reporting Requirements
Ford Motor Company requires that suppliers who participate in the 2nd Tier Program submit performance reports detailing M/W/VBE purchases on a semi-annual basis through our interactive M-Tier reporting web site (www.m-tier.com). The SDD Office, our buyers and SDD business managers will work with you to develop an aggressive 5-year supplier plan if you do not presently have a plan to get to 6% minority purchases, 2% women-owned purchases and 3% veteran purchases.