Ford Motor Company – Case Study Jason Austin Denine Rood Jeanne Sands Like apple pie and a summer baseball game, Ford Motor Company has come to symbolize America, the land of opportunity. This America is a place where a person with scarcely any means can take little more than an idea and transform it into one of the most successful companies in the world. This is the story of Henry Ford and the Ford Motor Company. Consider the following quote from the Ford Web site. Ford
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director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain
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branded FMCGs. It has a fleet of 10 tempos, which supplies its stores once a day. As the discount format requires holding costs to be at a minimum all the stores are connected in an intranet to facilitate inventory planning. Also spot payments made, helped to get cash discounts to the company. 3. Field Fresh Distribution Strategy It follows a strategy of minimum suppliers to take advantage of economies of scale (in purchasing and supply logistics), reduced overheads and control requirements
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Background (General Facts from Case Study) Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in an interview with Joan Magretta[1], is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured,
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Dell as the publicly traded company on PC industry, it used the direct-sells model by the network servers. Porter’s 5 forces gave the big helps on Dell’s strategy management. At the sight of relationship between supplier and buyer, Dell got the successful management method on supply-chain. On one hand, Dell company conformity the external resources by the supply-chain management, the direct operate model make Dell built a fictitious platform and provided the business flawless. On the other hand
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EXECUTIVE SUMMARY As director of Supply Chain Systems, I have decided to implement portions of the new supply chain strategy of Virtual Integration and strategies from companies like Dell. Although there are several key differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, distribution system, dealerships
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Consultation: With appointment (office hour, weekdays) TA See Scele Introduction to Supply Chain Management Learning Objectives Understand the basic concepts of supply chain Identify the supply chain decision phases and know the significance of each decision phases Understand the goal of a supply chain and the impact of supply chain decisions on the success of the firm What is a Supply Chain? All stages involved, directly or indirectly, in fulfilling a customer request
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of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain
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Dell Inc. Don’t bother asking computer giant Dell Inc. about the prolonged slump in the high-tech market — the company just posted a 16% increase in sales for its most recent quarter, the sixth straight quarter Dell has enjoyed a double-digit revenue gain. Even more impressively, the hike in sales was accompanied by a 21% increase in profit. All told, Dell expects to reach $40 billion for the year, a substantial improvement on the $32 billion in sales it had last year. The secret to Dell’s success
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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
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