Ford Motor Company Case Report Essay example - 1835 Words

Ford Motor Company Case Report EXECUTIVE SUMMARY As director of Supply Chain Systems, I have decided to implement the new supply chain strategy of Virtual Integration, and model its supply chain after companies like Dell. Although there are several key differences between the companies, Dell’s direct business approach can be applied to every facet of Ford’s operation. Special care will need to be taken to address the unique dependency of our custom â€Å"tier- one† suppliers. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, while the management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures†¦show more content†¦To answer these threats, we have made recent attempts to transform our dated vertical (not virtual) integration model into a manoeuvrable, efficient supply chain. We have implemented Just in Time Inventory (JIT), total quality management (TQ M), and synchronous material flow (SMF), as well as a multi-tiered system of supply. The tier system consists of numerous generic suppliers and tier one suppliers that provide us total vehicle sub systems. These suppliers are totally dependent on us for survival as they cater solely to our specific requirements. We face many challenges in implementing a virtual supply chain that Dell did not have to face. Some of which include: - product complexity and rigid supplier networks - communication channels and procurement procedures (such as the typical phone and fax). - manual ordering and accounting procedures. - a lack the money to invest into internet technology, leaving little incentive to upgrade. - historical dealer retailing and traditional consumer buying habits. All of these challenges inhibit the full scale implementation of virtual integration. CRITERIA: In order to judge whether or not a good decision about implementing a new virtual integrated system has been made in this case, I would look at the potential outcome. The questions I would like to have answered are: Is it possible to successfully implement the virtual system and maintain our supplier relationships and help them to aShow MoreRelatedFord Motor Company Case Report1820 Words   |  8 PagesFORD MOTOR COMPANY Written Case Report F.B. EXECUTIVE SUMMARY As director of Supply Chain Systems, I have decided to implement the new supply chain strategy of Virtual Integration, and model its supply chain after companies like Dell. Although there are several key differences between the companies, Dell’s direct business approach can be applied to every facet of Ford’s operation. Special care will need to be taken to address the unique dependency of our custom â€Å"tier- one† suppliers. A modificationRead MoreCase Analysis Report Ford Motor Company and Firestone3599 Words   |  15 PagesCase Analysis Report In August 2000, Ford Motor Company and Firestone Tire Company recalled 6.5 Million ATX and AT tires that had been installed on Ford’s Explorer model SUV. At the time, it appeared as though Ford and Firestone were doing the right thing. They had found out that the tread separated on Ford Explorers in states with intense heat, such as Florida and Texas. However, it later came to light that both Ford and Firestone had known about these problems earlier than 2000 and that FordRead MoreFord Motor Company Supply Chain Strategy Case Report3198 Words   |  13 PagesFord Motor Company Supply Chain Strategy Case Report 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. 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