Ford Case Analysis

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Ford Motor Company - Supply Chain Strategy

TABLE OF CONTENTS Part I. Executive Summary
Part II. Issues Identification
Part III. Alternative Options
Part IV. Recommendation
Part V. Implementation
Part VI. Conclusion

Part I. Executive Summary
Ford Motor Company was founded by Henry Ford in 1903; the company had produced over 260 million vehicles with about 370,000 employees today. Although
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In order to overcome this challenge; three options were proffered which are:
* Do not change the current business process
* Improvement its information System on the principle of Order management system to reduce inventory and increase ROI.
*Streamline the number of its current suppliers to keep inventory low and improve quality Part II: Issues Identification
- Large Inventory – Ford currently holds a high inventory which will in turn tie down its working capital for example the loan received from the bank might affect it share price as a result of interest rate.
- Cycle time reduction – the company current Order to Deliver (OTD) process is between 60 and 15 days.
- The company’s reduction in its supplier base to have a longer term relationship with fewer suppliers known as Tier one suppliers. These tier one suppliers have no capital to invest in the new technology that Ford seeks to get into and this might have an impact on the proposed I.T.
- Inadequate flow of information – Ford is a global company and the flow of information between Ford and its other locations is still a challenge where information is not easily transported.

Part III. Alternatives / Options 1. Ford should continue with its current system of

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