FORD MOTOR COMPANY

Supply Chain Strategy

A Case Analysis

By,
Group 04, Section A
Aishwarya Balasubramaneyam 14008
Lokkesh Kumar C 14072
Mohammed Rafath T P 14082
Ravikiran R 14118
Sachin Madan Honnavar 14129
Yashasvi S 14183

FORD
Americanmultinationalautomaker
headquartered in Dearborn,
Michigan
Founded byHenry Fordand
incorporated on June 16, 1903
In 1913 introduced the worlds first
movingassembly linefor cars

OVERVIEW

Teri Takai, recommends implementation of virtual integration

strategies from companies like Dell to portions of Fords supply
chain strategy.
The re design of the process must include design not only of
the supply chain but also of fulfillment, forecasting,
purchasing, and a variety of other functions
Teri believes that implementing virtual integration by building
on Fords key initiatives and projects including Ford Production
Systems , Order to Delivery and Ford Retail Network will make
supply chain more smooth and improve overall performance.

Cont..
Managers could overcome the complex and inaccurate manual
process of forecasting and procuring parts
Further improved Supply Chain management will improve
Supply Chain responsiveness and increase shareholder value.
Due to increase in market competition, supply chain
superiority of competitors, high profitability of financially equal
companies, Fords CEO, Jac Nasser is focusing on increasing
shareholder value and customer responsiveness

Dell
Dell applied virtual integration in four main areas:

organizational simplification,
inventory management
customer service and support
suppliers management.

Issues
identification
Purchasing organisation
No updated it technology
No communication with their end customer
Poor demand forecasting

Cause analysis
Segregated Departments
Large number of suppliers with many layers
Incompatible systems
Poor demand forecasting

Recommendations

Fords supply chain operations would benefit from dells virtual integration strategy
Create more strategic and structural IT alignment within the organization; as well
as invest in IT for suppliers so that all players are connected and aligned with fords
goals.
Similar to dell, reduce working capital by shifting the ownership of raw materials to
suppliers by using electronic data interface (edi) and the existing advantage of
nearby ship points.
Involve suppliers in the r&d and share designs with tier one suppliers in order to
speed time to market
Collect customer data from dealers to segment customers and work with each local
dealer to accurately forecast demand.

Cont..
Allow product customization both online (Web capabilities) and offline.
The sales cannot be completely virtual like the DELL model, but Ford can create
a direct channel to communicate and interact with the customer by continuing to
set up its own dealerships through the Ford Retail Network initiative and reducing
dependence on Retail Outlets
Implement a support network where parts can be exchanged and delivered in a
short time.
Centralizing some of its key functions to make the processes standardized and
leaner and bringing all the geographies on a single platform will enable effective
2-way communication

THANK YOU
Thank You