Ford Motor Company Case

Topics: Ford Motor Company, Supply chain management, Automotive industry Pages: 15 (1705 words) Published: April 8, 2015
Ford Motor Company Case

Submitted to: Perry Davidson
Submitted by: Claudio Parra
Submitted on: November, 17th, 2014
Class: SCM-Module 1 – Monday nights @ Seneca

Ford Motor Company Case

Table of Contents

Executive Summary…………………………………………………………………………………..3 Introduction………………………………………………………………………………………………4 Issue Identifiers………………………………………………………………………………………….5 Environmental Root Cause……………………………………………………………………….6-9 Alternatives……………………………………………………………………………………………10-11 Alternatives Exhibit 1………………………………………………………………………………….12 Recommendation……………………………………………………………………………………….13 Implementation Plan……………………………………………………………………………….…14 Conclusion…………………………………………………………………………………………..……..15

Ford Motor Company Case

Executive Summary:

The Ford Motor Company has been a leader in the automotive industry for decades and their dedication to maintain that ideology for years to come, they had to make some significant changes to their supply chain network in work to succeed. At the end of the 20th century, Ford was faced with challenges from completing globalization of automotive companies and the increasing market share from foreign companies. Ford needed to update its supply chain strategy and network in work to keep at pace with competitors or risk falling behind and eventually disappearing in such a competitive market.

Ford was slowly implementing processes to keep them current and competitive, but moving to a virtually integrated strategy would ensure their longevity and competitiveness in what has become a global market. Using the Dell Computer approach to their supply chain, the Ford Motor Company had to adjust the moto to reflect their needs. Implementing this strategy helped the Ford Motor Company stay competitive and maintain profitable.

Ford Motor Company Case

Introduction:

In this Case we focus on the Ford Motor Company and the decision to implement a virtually integrated system and redesigning their supply chain to maximize IT capabilities without affecting their quality. Using Dell Computers as the best practice example if virtual integration executives are faced with the decision to reduce their supplier network base from tier one to tier three, Also how the Ford Motor Company decrease cost but increase order to delivery time with keeping the quality of the product up to standard.

Ford Motor Company Case

Issue Identifiers:

The following are issues identified in the case focused around the Ford Motor Company:

-Growing competitive market

-Redesigning the supply chain

-Vertical integration

-Ford 2000 initiative

-Virtual integration

-Ford Retail Network

Ford Motor Company Case

Environmental and Root Cause Analysis

Environmental:

Ford Motor Company was the second largest industrial manufacture in the world and one of the big three in the North America(GM, Ford and Chrysler). Employer of about 370,000 people with operations in about 200 countries and revenues of over $144Billion, it felt pressure from foreign based auto manufacturers such as Honda and Toyota. In actuality all these companies faced the same challenges which were improving quality, reducing cost and increasing their order to delivery(OTD) time. Successfully achieve these goals would ultimately increase profit and increase market share. The industry was becomes more globalized as the future became a reality.

Growing Competitive Market:

Ford had grown substantially over the years to the point where in the late 1980’s, it had several thousand suppliers of production material in a complex network of business relationships. To the point where suppliers were picked mainly based on cost and little regard for the overall affect it had on supply cost, which is generally the case when dealing with such a large complex network of suppliers. In the 1990’s, Ford began to reduce the...
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