The Ford Motor Company Supply Chain Management

This essay is to discuss the supply network of a product of a specific brand. The supply network means setting an operation in the context of all the other operations with which it interacts. Ford Motor Company is the best example to illustrate the supply network better. So, before illustrate the supply network, let’s talking about ford Motor Company. Ford Motor Company founded by Henry Ford in June 16, 1903. It is an American multinational automaker. Its headquarters are in Dear-born, Michigan, United states. But Ford Motor Company isn’t the first one to build or make a car. The industry of making a car had a long journey. The automobile industry started in the 1890s. The United States was the leader in total automobile production. After World War II, China was the top in producing automobile. China almost doubled the US production, and Japan was in third place. In the whole world, there were about 806 million cars on the road in 2007. The essay will illustrate everything about the company.

The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

In this world of technology and innovation even Ford Motor Company is investing in new technologies in order to improvised their supply chain management, build an environment with interaction between each department as well as suppliers in order to reduce the bridging gap between them. As it is a leader in auto market segment, needs to update and coop with time and technology periodically but due to huge competition from the Japanese auto makers like Toyota, Honda, and Nissan, Suzuki etc., who are strong and powerful with references to the supply chain process management due to which Ford market share dip compared to others as well as the sales also declined. During this time, Ford analysed the situation and thought positively and started improvement in the supply chain management.

Do you need new tires? Discount Tire is the place for you. The Discount Tire CO was founded in Ant Arbor, Michigan 1960 by Bruce T. Halle and is known for one of the largest wheel retailers today. Most people who come in are concerned with the current condition of the tires on their vehicle. Discount Tire Company provides services like air checks, tire repairs and new tire and wheel purchases. They are a company that has a target customer base of anyone that owns a vehicle and are often very helpful to those people that simply cannot afford tires. They sell tires for any vehicle you could imagine from the tiny two seat smart vehicle to a two hundred thousand dollar Ferrari and anything in between. They are one of the only companies that do not sell their own brand of tire however; they do have a sponsorship brand with the Pathfinder Tire Company.

Canadian Tire in the past couple of years had been marked by the increase of economic volatility. But it was impacted with economic recession and fluctuations of clients demand and supply delay in raw commodity, material, fuel prices. Hence, Supply Chain Executives were facing pressure to develop/Execute strategies more efficient, customer-centric on SC (Supply Chain) and look for innovative path to minimize costs. In the mean time, they were asked to grape of business opportunities that will make come to pass from the current economic conditions. So they come up with the following supply chain Strategies and it had been used by Canadian Tier since 2008 onward.

I take this opportunity to express my sincere thanks and deep gratitude to all those people who extended their whole hearted co-operation and have helped me in completing this project successfully.

Ford Motor Company has one of the most complex supply chain in the industry. Ford has achieved several of their goals by fostering long-term relationships with their suppliers through active

In 1913, Henry Ford revolutionized product manufacturing by introducing the first assembly line to the automotive industry. Ford 's hallmark of achievement proved to be a key competence for the motor company as the low cost of the Model T attracted a broader, new range of prospective car-owners. However, after many decades of success, customers have become harder to find. Due to relatively new threats to the industry, increasing numbers of cars and trucks are parked in dealer lots and showrooms creating an alarming trend of stagnation and profit erosion. Foreign-based automakers, such as Toyota and Honda, have expanded operations onto domestic shores and, in turn, have wrestled

As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri

Although the direct business model of Dell is most attractive, there are several key differences between the computer and auto industries which serve as barriers to Ford‘s implementation of uniform, supply chain virtual integration. Ford must tackle many diverse obstacles that were, simply, not a factor with Dell‘s implementation. These obstacles range down the delivery chain from the supplier to the manufacturer to the dealer and, ultimately, to the customer. Overall, the intricate and historic process of manufacturing and selling automobiles contradicts the technological innovation necessary for a true virtually integrated system to exist.

Honda’s current supply management strategy is consistent with Mr. Honda’s history. There three factors about Honda’s supply management strategy, focus on local market, emphasis on competition and reliable suppliers.

4. In a service supply chain, the (explicit) cost of information is higher than in a product

Supply chain management (SCM) is a core part of organizational effectiveness in order to achieve goals characterizes efficiency. Globalization and international agreement led Toyota to develop it is SCM process to increase outsourcing supply raw materials from foreign market that are low cost and high quality.

Unique position in automotive industry: there is public excitement for the vehicles Tesla manufactures. Tesla has a climbing interest among investors as that population continues to grow and the company’s value is increasing with the development of a sound financial strategy for future value. The intangible appeal of the Tesla car product is the high-value of a new company projecting market confidence.