Ford company supply chain strategy

Number of service jobs completed per day aftersales service productivity Number of vehicles rolled out per day manufacturing productivity Number of applications processed per day Ford Motor Credit Company productivity References.

Third, the initial investment for both sets of suppliers would be minimized. Supply chain team has split down the middle on the issue. Issues Ford needs to address a couple of issues in trying to determine which information technology strategy will work best for supplier interaction as well as with their current engineering projects.

Today, the Ford Motor Company is the second largest industrial corporation in the world operating in countries around the globe. In order to improve the manufacturing process, the company decided that it would change the outlay of its factory plants which would help the company in maintaining its manufacturing process as well as improves the safety concerns of the truck dealing.

In order to successfully implement the virtual integration, the problems existing in the current supply chain will be identified and catered. Some insist on virtual integration following Dell model in order to reduce working capital and exposure to inventory obsolescence without risking being left behind.

Case Analysis of Ford Motor Company: The future profitability of the company is entirely dependent on the capabilities and skills of the Ford that how well the company would use its capabilities and skills in order to increase in market share in the foreign and domestic market through refining the economic features of the company.

Ford has the goal of maximizing human resource effectiveness and efficiency in this strategic decision area of operations management. Having a direct relationship with each Tier 2 supplier would effectively create a more stable environment for that supplier because they would not only have a relationship with the Tier 1 supplier but also directly with Ford.

Ford addresses these concerns through automated scheduling in its production facilities, and semi-automated scheduling in its offices, such as corporate offices and regional offices. This strategic decision area of operations management focuses on streamlining and cost-effectiveness in the supply chain.

Case Analysis Of Ford Motor Company: Supply Chain Strategy

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.

Please refer to Exhibit 1. This could lead to overall lower material prices and decrease the risk of losing valuable Tier 2 suppliers. Job Design and Human Resources. We also look for ways to work with suppliers to share best practice, build capacity and ensure transparency.

From suppliers, to supply chain department, purchasing, engineering, distributors, professionals from Ford Retail Network, and most importantly product development department will have to be involved in an integrated decision making process. The purchasing team could work out proposals as to what standard components the engineers should use so that purchasing can decrease the batch cost of a component by ordering more without running the risk of building large amounts of inventory.

Case Analysis Of Ford Motor Company: Supply Chain Strategy

Main strategic issue for Ford is control and management of the numerous links of the supply chain. Ford pioneered the assembly line method, which maximizes production capacity.

They were provided with a range of techniques, e. These suppliers provide Ford with complete vehicle subsystems. 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: The business operations of the organization are spread across the globe with manufacturing plants in different parts of the world.

Ford Motors Company Supply Chain Strategy Harvard Case Solution & Analysis

Ford studied the supply chain processes of Dell and is considering the use of technology for virtual integration of the supply chain to benefit from the cost savings it can provide. As such, in the 10 strategic decisions of operations management, Ford must ensure flexibility along with consistency throughout its global organization.

Ford motor company: supply chain strategy Essay Sample. Since the Ford Motor Company’s incorporation by Henry Ford inits strategic focus has. Motor Company: Supply Chain Strategy Case Analysis Monitor and Control Metrics will be an important part of determining the success of the changes and investments put forth by Ford Motor Company.5/5(1).

Ford motor company: supply chain strategy Essay Sample

The company also needs to decide on how it should maintain its supply chain processes by using the emerging information technology and ideas which would help the company in attracting the suppliers of the company which help the company in improving its market share in the economy.

So I would recommend Ford to extend its Virtual-business strategy by partially implementing the Dell’s model of supply chain (Alternative 1). The part of the Dell’s model which does not fit with Ford need to be discarded.5/5(5).


Along with this, Ford Motors by investing on web based supply chain model, will allow the company and the Tier 1 suppliers to hold the IT capabilities without actually investing large investment on capital emerging technology which will allow Tier 2 suppliers to access the system.

Ford Motor Company: Supply Chain Strategy Executive Summary The Ford Motor Company is a well established, international automotive design and production company that is shifting the company mission to have an emphasis on shareholder value and customer responsiveness.

Ford company supply chain strategy
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Ford Motor Company: Supply Chain Strategy - Case Study