ABB and Ford: Creating Value through Cooperation

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To the extent that buyer-supplier relationships can be cooperative, value can be created for both customers and vendors. Regrettably, the traditional behavior of some industries, particularly the U.S. automotive industry, often precludes cooperation. The authors describe one successful case — the experiences of ABB and the Ford Motor Company during the design and construction of a $300 million facility. The authors explain the key factors that led to ABB's and Ford's success and how value-adding cooperation between buyers and suppliers can be fostered.

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