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Ford motors company case study virtual integration

  1. A set amount of days should be enforced to ensure that lead times do not exceed this period. This further increases lead times, costs, and a lack of coordination among the supply chain.
  2. Expand your research by topic.
  3. A set amount of days should be enforced to ensure that lead times do not exceed this period.

These obstacles range down the delivery chain from the supplier to the manufacturer to the dealer and, ultimately, to the customer.

Henry Ford revolutionized product manufacturing by Introducing the first assembly line to the automotive industry.

  • There would also be an improved relationship with both the customer and the supplier;
  • Ford's hallmark of achievement proved to be a key competence for the motor company as the low cost of the Model T attracted a broader, new range of prospective car-owners;
  • If the sales person at the distribution centre does not have the tools or visibility to see what Ford has extra stock of;
  • Due to relatively new threats to the industry, increasing numbers of cars and trucks are parked in dealer lots and showrooms creating an alarming trend of stagnation and profit erosion.

However, after many decades of success, customers have become harder to find. Due to relatively new threats to the industry, increasing numbers of cars and trucks are parked in dealer lots and showrooms creating an alarming trend of lower profits. Foreign-based automakers have expanded operations onto domestic shores and have taken market share from American automakers.

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As a direct result, unit over-capacity has steadily risen, while eighteen competition and diverse product lines have led to Increasing customer demands. Senior Executives asked how the company should use the emerging information technologies and ideas from new high-tech industries to change the way we interact with Suppliers.

Ford went on an exploration to find ways to improve the Supply Chain management and to increase shareholder value and Supply Chain responsiveness. Specifically they are looking at how Dell manages their Supply Chain and incorporates the virtual integration strategy.

  • Ford Motor Company Case Study As Teri Takai, Director of Supply Chain Systems, the purpose of this report was to determine if implementing new technologies would be beneficial for Ford Motor Company and in the way it interacts The major findings indicate that there are several issues at Ford;
  • Ford also earns substantial revenues and profits from their financial division.

Below are some of the issues that refaced. First, product complexity and supply channel constraints are key limiting factors of lean manufacturing that must be addressed.

Ford Motor Company Case Study

Due to the generic nature of computer parts, Dell possesses the ability to negotiate and procure necessary Items for plant assembly from several Independent purveyors. I Nils Is not ten case Tort For a.

Ayatollah, ten communication channels and procurement procedures of Ford and its tier network are bound within he limits of traditional phone and fax methods resulting in delaying procurements, clogging inventories and affording errors typical of a manual process.

Finally, retail distribution and traditional consumer buying habits inhibit the full-scale implementation of virtual integration. Dell takes orders directly from the customer and delivers the product, again, directly to the customer. In the case of Ford, dealer showrooms and car lots have been the only ways of retailing a new car since the inception of the automobile.

Example essay writing, topic: Ford Motor Company Virtual Integration

Closing all dealerships for the sake of advancement is impossible. The key if for Ford to find a solution to the obstacles of virtual integration, it could turn a new supply chain efficiency into a core competency. Managers could overcome the burdensome and error-prone manual process of forecasting and procuring parts which would result in reduced TOT, lessened cost and enhanced customer satisfaction. This option would be supported by the most conservative associates in the company.

  • By the very nature of Ford's tier network, "tier one" partners have fixed relationships with Ford and cannot be chosen by cost, alone;
  • If Ford could possibly find a solution to the obstacles of virtual integration, it could turn a new supply chain efficiency into a core competency.

This strategy is the safest and most cost effective in the short term. Risk of falling behind other manufacturers Continued TOT delays Excess inventory issues not resolved Communication systems remain disjointed and not fully utilized Loss of Market Share continues Option 2 Launch a Partial Virtual Integration and supply chain strategy.

Ford’s implementation

Ford and Dell have some similarities and it would be possible to virtually integrate certain aspects of the Supply Chain. Areas to be considered for virtual integration that are more standardized.

Also, if they expand the use of E-Business, this would provide an alternate channel to reach customers.

E-Business will be the key to implementing virtual integration. For this alternative, there would need to be an almost complete restructuring of the company to mimic the Dell model.

Where Ford Should Focus 1 Partnerships with suppliers — Long term commitment with suppliers and sharing of production schedule, daily sales forecast and new model introduction information tit suppliers 2 Just-in-time components inventories — the business to business BIB transactions are accomplished with relative ease and minimal cost 3 Extensive data and information sharing with both supply partners and customers.