Supply Chain Initiative at Ford

In: Business and Management

Submitted By ssper
Words 1974
Pages 8
Executive summary:
This paper examines the issues in the supply chain management at Ford Automobile Company. Some of the issues identified includes: traditional supplier base which extends to thousands of suppliers, technology is not kept abreast and huge inventories. Further, virtual integration model as implemented in Dell Computers is discussed and its pros and cons to implement at Ford. Clearly, Ford operations make it difficult to gain all the benefits of virtual integration that Dell Computers have reaped. Recommendations are made to implement certain aspects like reducing suppliers, outsourcing non-core activities, direct sales, technology improvement, and production standardisation. In addition, key metrics are used to monitor and control the success of these measures.

Table of Contents

Executive summary………………………………………………………….2
Issue Identification ………………………………………………………….4
Root Cause Analysis…….……………………………………………...….. 5
Alternatives and Options…………………………………………….………7
Recommendations…………………………………………………………...9
Implementation……………………………………………………….…….11
Monitor and Control………………………………………………………..12
Conclusion…………………………………………………………….…….13

Issue identification: * Long Lead time * Organisational and process redundancies * Traditional supply chain model and outdated technology * Huge supplier base * Huge production network and social responsibility * Large retail network of private dealerships * Large finished good inventory * Independent purchasing body within Ford

Environmental and root cause analysis * Long Lead time: Traditionally, Ford took 45-60 days from customer’s order to deliver the finished product. This is a considerable long time in today’s auto industry. Prospective customers might not want to wait so long for their vehicle delivery and hence look for alternatives. * Organisational and…...

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