Ford motor company supply chain strategy case study analysis

Origin of the Species January 01, By Joseph O'Reilly No tags available Today, lean manufacturing and demand-driven strategies are considered innovative and sophisticated competencies.

Ford motor company supply chain strategy case study analysis

Ford motor company supply chain strategy case study analysis

Lead time reduction and, consequently, cost efficiency are hard to achieve without smooth information flow. Recommended partial implementation of Dell direct model, i. Introduction In the era of rapidly changing information technologies Ford Motor faces the challenge of changing its supply chain network.

Supply chain team has split down the middle on the issue. Some insist on virtual integration following Dell model in order to reduce working capital and exposure to inventory obsolescence without risking being left behind.

Ford motor company supply chain strategy case study analysis

Issue Identification Ford Motor strategy puts emphasis on shareholder value and customer responsiveness. Virtual integration introduced by Dell has delivered on those dimensions. Implementation of emerging information technologies, including the Internet, and ideas from new high-tech industries into supply chain management is inevitable and vital for the future business development.

Degree of virtual integration is evaluated by addressing the following issues: Supplier management; Lack of up to date IT infrastructure; Direct contact with end users.

Environment and Root Cause Analysis Ford Motor is a global organization with operations spanning countries with over manufacturing facilities.

In these conditions efficient data exchange, both internal and external is crucial for success. Direct model introduced by Dell Computer Corporation proved to be the best contemporary solution of the matter. Please refer to Exhibit 1.

Main strategic issue for Ford is control and management of the numerous links of the supply chain. To produce a single unit Dell needs under a hundred parts, whereas Ford requires over a thousand. Unlike Dell which has less than 50 suppliers, Ford has several hundreds of tier-one suppliers.

The shift toward long-term relationships with very capable suppliers who would provide entire vehicle sub-systems has significantly reduced the number of tier-one suppliers. They were provided with a range of techniques, e.

Tier-one suppliers are in charge of managing lower tier suppliers who usually do not have developed IT capabilities, which slows down the process.

Please refer to Exhibit 2. All of them are aimed at cost reduction and improving customer service.

Case Studies - Inbound Logistics

In order to evaluate current business environment and identify the best opportunities for development and growth, SWOT analysis was performed. Please refer to exhibit 3.Casebook Elaine S. Silver. Supply Chain Challenge: Getting Employees on Board.

Agilent Technologies, a global high tech life sciences, diagnostics and applied chemical company applies sophisticated scientific methods provided by CorpU to implement sweeping new order fulfillment and supply chain .

Unifor Ford Local Retirees - News

Using Exploratory Data Analysis to Improve the Fresh Foods Ordering Process in Retail Stores. This case study presents a real-world example of how the thought processes of data scientists can contribute to quality practice. Optimize your supply chain with LLamasoft's industry-leading supply chain management software.

Ford Speak: Acronyms, Definitions, and Terms. This booklet contains the Acronyms and Terms available on-line as part of the Information Management databases on the Ford Intranet. How Ford is tackling its restructuring.

Daniel Howes and Ian Thibodeau The Detroit News Sept 12, Dearborn — Ford Motor Co.’s $25 billion global restructuring is targeting its vast manufacturing and product development system, as well as its troubled operations in Europe and South America — the regions most likely to be hit with job cuts.

FORD MOTOR COMPANY Written Case Report F.B. EXECUTIVE SUMMARY As director of Supply Chain Systems, I have decided to implement the new supply chain strategy of Virtual Integration, and model its supply chain after companies like Dell.

Walmart SWOT Analysis & Recommendations - Panmore Institute