Ford Supply Chain

Submitted By ooples
Words: 1554
Pages: 7
Open Document
Issues Identification

The main issue at hand for Ford Motor Company is whether it would be beneficial to virtually integrate their supply chain, modeling themselves after Dell’s approach to supply chain management. Ford’s current supply chain is going through a time of change whereby new management feels that adapting to virtual integration could bring large benefits to the entire supply chain that could substantially reduce amount of inventory on hold. Ford have historically engaged in a push system, which is defined as having a pre-existing schedule that allows goods to move down the supply chain according to what the organization believes will be sufficient to meet demand. Virtual integration would blur the lines in the supply chain process within and across the company’s boundaries.

Ford have implemented new supply chain schemes to try to refine their supply chain to be more consistent, effective, and timely. This can be seen in their the Ford 2000 initiative which focused on key attributes in their production basis to move towards a pull system, their order to delivery system to reduce order times from 45-65 days down to 15, and their Ford Retail Network which aimed at buying all Ford dealerships in local markets to reduce competing with one another and keep consistent looks between all of the showrooms.
At this time in Ford’s history with an increasing focus on connectivity via internet and intranet present in other organizations and being developed within their own organization, Ford has decided to look at Dell’s supply chain and decide whether it would be beneficial to adopt the same strategy, adopt specific processes that would could be carried over, go in a different direction, or maintain the status quo.

Environmental and Root Cause Analysis

Advantages of Virtual Integration
Integration of a virtual supply chain could bring about numerous benefits for Ford to refine their supply chain that would potentially make them more profitable and a leader in the industry for cost effective supply chain management. Since it is so competitive, any cost effective procedures could make their product more appealing to the end customer and to their suppliers to give them preferable terms and share information.
The key advantage to virtual integration for Ford would be able to accurately forecast the amount of inventory they need. Dell currently operates with a limited amount of inventory on hand by only ordering exactly what they need. For example, Michael Dell explains in his interview that when they order, they will say “Tomorrow morning we need 8,562, and deliver them to door number seven by 7 A.M”. Currently, Ford uses the Order to Delivery initiative which aims at reducing lead times and by sharing the information with suppliers, they would speed up the entire process and deliver the end product faster and with a reduced cost base for the organization.

Another big advantage of implementing virtual integration for Ford would be for its Ford Retail Network, where Ford aims to purchase each showroom and give a consistent design and reduce competition between dealerships that sell Ford automobiles. Having the ability to communicate with each other in real time by pooling and share resources such as consumer demand and inventory would be crucial to perform above and beyond their competition, since

Weaknesses of Virtual Integration
The essential weakness for virtual integration for Ford is trying something in an industry that has historically never used such a supply chain method to deliver their product. As Dell is in such a different industry, it may be hard to derive some of their benefits from their supply chain, such as having minimal employees and outsourcing a large part of their manufacturing and inputs. Dell’s industry is made up of much cheaper products that can easily be replaced and any fault will not cause danger to the end customer. For example, Dell strives for only 1% of their monitors
Show More

Related Documents: Ford Supply Chain

FORD MOTOR CO Essay examples

recommend that Ford implement a partial virtual integration system similar to that adopted by Dell. This system will provide advantages seen from a tightly coordinated supply chain. Virtual integration will achieve both coordination and focus for Ford. This system would allow Ford to use information technology to interact in a more streamlined fashion with their customers and suppliers. If this virtual integration system can be implemented alongside their current system this will allow Ford to better…

Words 1141 - Pages 5

Essay about Oracle Corporation vs Ford Breakdown

the industry show’s a profitable company subject to little risk. Ford Motor Company (F) Ford Motor Company is a company firmly entrenched at the top of the Major Automotive Manufacturers. Albeit with slight decreases across the board when compared to 2011, Ford produced very strong financials for the year 2012. Sales decreased approximately two billion dollars but the EBT only decreased one billion dollars, showing that Ford decreased COGS by the same amount. This decrease in COGS mitigated…

Words 953 - Pages 4

Discussion Board Essay

Corporate culture is a collective way to do things. It is a learned behavior that is common knowledge to all participants. Corporate culture can be considered the glue of the business. FORD MOTOR CO. Culture change within FORD MOTOR CO. has been great, according to Felicia Fields, Group Vice President, Human Resources and Corporate Services. There is a renewed since of pride. We are no longer talking about survival, but talking about thriving and growing into…

Words 372 - Pages 2

Essay about Get to know me

Dodge v. Ford Motor CO. In 1919 stockholders in Ford Motor Co. filled a suit against Ford’s Co stating that Ford was not fulfilling has duties to their shareholders. The price of the Model T Ford's main product had been cut over the years while the cost of the workers had dramatically increased. The company's president Henry Ford sought to end special dividends for shareholders in favor of massive investments in new plants that would help Ford to increase production and the number of…

Words 1017 - Pages 5

Essay Ford Pinto Case Review

Case Review #1: Ford Pinto 1.) FACTS • Ford was aware of gas tank defects on their Pinto model • Ford ignored the safety concerns, positing “safety doesn’t sell” (p. 66) • Ford based their decision off a cost-benefit analysis o Determined the “cost” of trunk alterations outweighed the “cost” of enhanced safety • There were over 40 incidents involving Pinto passengers dying or being severely maimed 2.) ETHICAL ISSUES • Is it morally right to sell a car with known, potentially fatal, defects…

Words 598 - Pages 3

Similarities Between Henry Ford And The Dodge Brothers

developers of the car was a man named Henry Ford. In the beginning of his automotive production, he outsourced major components to other companies, one of which was the company run by John and Horace Dodge. The Dodge Brothers business relations with the Ford Motor company grew more and more until, one day, after getting in a fight, the Dodge Brothers sued Ford Motor company, breaking their affiliation with the Ford Motor Company, and producing their own cars. Henry Ford and the Dodge brothers had certain…

Words 1232 - Pages 5

Essay about Panama Canal

Henry Ford Henry ford was a very successful and prospering man and the founder of Ford Motor Company. In 1879, Ford left home to work as an apprentice machinist in Detroit, first with James F. Flower & Bros., and later with the Detroit dry dock Co. In 1882, he returned to Dearborn to work on the family farm, where he became adept at operating the Westinghouse portable steam engine. He was hired by Westinghouse to service their steam engines. During this period henry also studied bookkeeping at…

Words 471 - Pages 2

Law Questions Essay

1) Since the injured plaintiff was not wearing a seatbelt, why is Ford being sued for failing to test the seatbelt sleeve? In the case of Branham v. Ford Motor Co., the Plaintiff brought the case against Hale, the driver, and Ford because the company failed to test the seat-belt sleeve, even though he did not "seriously pursue the claim against Hale" (Reed, Pagnattaro, Cahoy, Shedd & Morehead, 2012). The case against Ford was based on "two product liability claims: one for not testing the seat…

Words 844 - Pages 4

Ford: United Auto Workers and Ford Deal Essay

(Reuters) - Ford Motor Co agreed to invest more than $6 billion in U.S. plants, add another 5,750 jobs and pay bigger bonuses than General Motors Co in a new contract with the United Auto Workers union on Tuesday. Ford said the four-year contract for 41,000 factory workers would keep it cost-competitive with rivals, and analysts said it could clear the way for a credit upgrade that would bring down borrowing costs for the No. 2 U.S. automaker. The UAW, meanwhile, won new job promises and a…

Words 1020 - Pages 5

Toyota, Ford and Gm Essay

1: Corporate Governance Both Ford and GM completely abide by NYSE corporate governance standards, as they are domestic US companies. Ford and GM are required to strictly follow NYSE corporate governance standards. Toyota is permitted to follow certain corporate governance practices complying with Japanese laws and regulations, the NYSE has ruled that Toyota is exempt from certain NYSE corporate governance requirements. A significant difference in Toyota’s corporate governance structure is that…

Words 4991 - Pages 20