Ford Supply Chain Management Strategy Case Study : Ford Supply Chain Strategy

In this project, we will be studying Canadian Tire Auto Services’ main supply chain strategies. Canadian Tire provides many automotive services for their clients with many locations across the countries. Our goal for this project will also be to look into Canadian Tire’s logistics operations, their process of supplier selection, and evaluation. We will also look to study their use of the latest IS/IT innovations. We will then conclude our project by realizing the importance of supply chain management integration, as well as, the challenges and practices within a global supply chain.

The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.

Ford Motor Company is facing a major decision with regards to its supply chain strategy moving forward. The underlying question is, “how should the company use emerging information technologies and ideas from new high-tech industries to change the way it interacted with suppliers?”. Within Ford, there are 2 major, and opposing views. First, there are those that feel strongly that Ford should follow Dell’s model of “virtual integration” (reaping the benefits of vertical integration without vertically integrating) – using the model to communicate effectively with its suppliers, achieve and focus on inventory velocity, and allow its component suppliers to specialize. The other group believed that the Dell model would not

I spend pretty long time analyzing Ford’s current existing supply chain condition. I immediately became aware of its highly complex environment. This high level of complexity combined with other external and internal factors. These factors push Ford to search for the best solutions in order to overcome the costly supply chain issues that they are facing and may continue encounter in the future. Ford’s major challenges in their current supply chain system is:

As 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 but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri

The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and

Nearly from the beginning Ford has been a leader in supply chain. In the early part of the 20th century when there was shortage of materials on account of the world war, it resulted in stalling of the assembly lines.

The globalization of organizations and more competitive forces have compelled more manufacturing businesses to improve an efficient supply chain planning for reducing the cost of supply chain. Planning of supply chain is being the critical component of business’ management. Supply chains have conventionally been split, being unsuccessful to assimilate the business utilities in the chain of logistics process. Such difficulties, as extended order lead times, high inventory costs, and struggle in answering proactive to real time variations, having lower profits and weak client goodwill that can be determined by putting together supply chain management schemes for transportation and warehousing. Supply chain can be explained as a combined practice where actually numerous different organizations individuals such as manufactures, retailers, distributors, and suppliers perform together in order to obtain raw materials, transform these raw materials into wanted ultimate products and supply these ultimate products to the vendors. The key methods in this combined procedure are the distribution, logistics, production planning and control. The production and planning steps are two of the most crucial parts to obtain worldwide optimization in supply chain management. And, this should be explained inside the integrated planning infrastructure. Interactive parts of supply chain included key parts such as purchase, production, logistics planning, sale, production and manufacturing

2) What advantages does Dell derive from virtual integration? How important are these advantages in the auto business?

• Describe and critically analyze the supply chain management practices employed by both of these companies.

Supply chain management (SCM) is a core part of organizational effectiveness in order to achieve goals characterizes efficiency. Globalization and international agreement led Toyota to develop it is SCM process to increase outsourcing supply raw materials from foreign market that are low cost and high quality.

Unique position in automotive industry: there is public excitement for the vehicles Tesla manufactures. Tesla has a climbing interest among investors as that population continues to grow and the company’s value is increasing with the development of a sound financial strategy for future value. The intangible appeal of the Tesla car product is the high-value of a new company projecting market confidence.

The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry. Toyota as a name, a company, and as a brand has become synonymous with Quality.

This essay is to discuss the supply network of a product of a specific brand. The supply network means setting an operation in the context of all the other operations with which it interacts. Ford Motor Company is the best example to illustrate the supply network better. So, before illustrate the supply network, let’s talking about ford Motor Company. Ford Motor Company founded by Henry Ford in June 16, 1903. It is an American multinational automaker. Its headquarters are in Dear-born, Michigan, United states. But Ford Motor Company isn’t the first one to build or make a car. The industry of making a car had a long journey. The automobile industry started in the 1890s. The United States was the leader in total automobile production. After World War II, China was the top in producing automobile. China almost doubled the US production, and Japan was in third place. In the whole world, there were about 806 million cars on the road in 2007. The essay will illustrate everything about the company.

For Peer Review Technological change, information processing and supply chain integration: a conceptual model Journal: Benchmarking: an International Journal Manuscript ID: BIJ-06-2015-0064 Manuscript Type: Original Article Keywords: Technological Innovation, Supply chain management, Research and development, Emerging markets, Manufacturing strategy Benchmarking: an International Journal For Peer Review 1 Technological change, information processing and supply chain integration: A conceptual model • Purpose: Technologies change quickly in the automotive industry.