Essay Ford Motor Co. Case Report

2330 Words10 Pages
r [Type the company name] | Ford Motor Company: Supply Chain Strategy | [Type the document subtitle] |

NICOLE |

Table of Contents

Page 3. Executive Summary

Page 4. Identification Issues

Page 5. Identification Issues, Environmental and Root Cause Analysis

Page 6. Alternatives

Page 7. Recommendation, Implementation, Control

Page 8. Conclusions, References

Executive Summary
This case report addresses the challenges to implement virtual integration in Ford Motor Company, one of the largest automobile manufacturing companies in the world. It focuses on the viability of implementing a supply chain strategy following Dell’s “Direct Business model”

Dell’s direct business model used information and
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The efficient roll-out of new products may be impacted negatively due to lack of communication between these two key departments. Also suppliers were picked based on cost, and little regard was given to the overall supply chain cost.

At this level of the supply chain restructuring may be difficult due to corporate history and politics.

Information Technologies (short term issue, potentially long term issue)

An important issue is the lack of technological knowledge and application throughout Ford’s supply chain, were first tier suppliers well developed IT capabilities interacting with Ford via EDI, but they were not able to invest in new technologies at the same rate as Ford did. The understanding of modernity technology rapidly decreased in the lower tiers of the supply chain.

This situation was different to Dell’s supply chain, were by using new technologies Dell shared information in a real time fashion with its suppliers, helping them know Dell’s daily production requirements making the supplier more responsive to Dell’s needs.

Also Dell only kept suppliers that maintained their leadership in technology and quality making the overall supply chain more competitive.

Lead Times/Production Process
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