This achievement, termed by Michael Dell 'Virtual Integration' has been achieved by blurring the line between supplier, Dell and client, to the extent that third party service staff are often thought, by clients, to be Dell's own staff. Dealerships should be made part of the teams that help product development. These products are well suited to a closer integration of supply - virtual integration. Yet here we find an administration that cares about employment and on-shoring manufacturing more than about long term impacts on the environment or the industry landscape. The dealer network must be considered. Supply Chain Case Study A Company E. Change relationship with the dealerships so that they are not so independent and treated as autonomous entities when they should be included in the whole.
First, Ford should weigh more on long-term strategy instead of reacting to short-term changes. Real-time customer feedback and market insights 6. Develop strategy to determine how negotiating additional partnerships can decrease the number of Supplier b. Please place the order on the website to get your own originally done case solution. It refers to products that are built before a final purchaser has been identified, with production volume driven by historical demand information. This solves production problems related to communication, coordination, and control at the cost of increased overhead needed to set up the production organization. Be very slow with this process as rushing through it leads to missing key details.
Their current product line up is the strongest in their history and is still getting stronger. From business perspective, such decision normally includes following aspects. Virtual Integration — is the use of the Internet to replace physical components of a company with information. There are risk to any of the plans, but given the global economy we are in from a supply chain perspective, think it is unlikely isolationism wins out. Its supply chain is extremely complicated as the company aims to optimize its profitability by leveraging component supplies and vehicle assembly plant in many different locations. Agreed that it is a tough road ahead for Ford — yet, also one that has great potential.
Step 10 - Critically Examine Ford Motor Co. The isolationism, particularly the new policies from Trump administration, creates much uncertainty for Ford to plan for its future manufacturing footprints and to decide where to invest now. Fords' history is a factor to be considered, their longevity and size in the industry gives them a tremendous degree of influence when compared with Dell, a relative newcomer to business and whilst a large buyer of components, not so influential on trends and technology. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Many suppliers lack the money to invest in Internet Technology infrastructure required to fully support virtual integration Long Cycle Times Cycle time will have a direct impact on sales, inventory and profits. Introduction Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles across six continents.
The number of showrooms would be consolidated to focus resources on creating a superior selling experience,while the number of service outlets would increase to be closer to customer population centers. There is an urgent need to modify their supply chain in order to make it more cost effective and more profitable. . The company was responsible for the innovation of the moving assembly line where employees would remain in the same place while performing the same task on each automobile that move along the assembly line. The dealer network will probably be averse to Ford moving towards direct sales, as it will threaten their livelihood.
Ideally, these measures provide an objective method to evaluate automation systems for acquisition and design prototypes. If a client prefers they could order a vehicle built to order and supplied to a local dealer. Therefore the problem for management is to evaluate the implementation of virtual integration system in its supply chain. As diverse global dynamics confront the company and competitive pressures continue to build, he has the challenging task of improving Ford's brand image and returning the company to profitability. The relationship with customers is more difficult. In this paper, we present a set of measures to assess information complexity. Identify bottlenecks in the flow of parts in the Supply Chain iii.
In order to see how congruent the Dell model is to Fords' business we need to examine the similarities and differences between the two companies. You can use the following strategy to organize the findings and suggestions. He introduced to the car industry methods and systems innovative in theirday. The management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. The Company operates in two sectors: Automotive and Financial Services.
Ford is facing a similar situation here as it is in their best interest to remain on good terms with the President. Communication Improvements - Substitute information for inventory and ship only when we have real demand from customers. The time and resources required to efficiently introduce the model will not be financially feasible as the change will encompass various levels in entire supply chain. There is a huge difference between companies responding to actual political policy changes e. The tricky part about tariffs is that they are intended to have significant impact on supply chain decisions and sourcing, but four years later a new administration can incentivize in the opposite direction.
Moreover, the company also faced intense competition in the market; the main competitor of Ford is Dell. With regards to Ford, how do you see these isolationist approaches affecting other parts of their supply chain? A showroom is usually preferred. Distribution and Sales High Value Added - After production is complete, automobiles are shipped to dealerships around the world to be sold. I fully agree that Ford should focus on a long-term strategy rather than reacting to immediate, short-term changes in policy. Also, if we expand the use of E-Business, this would provide an alternate channel to reach customers.
Apart from manufacturing and factory-related decisions, what is the effect as you move up and down the supply chain? First, I feel that restrictions on manufacturing locations might make many of these companies cost incompetent in several high volume, low value geographies in Asia. Cutting inventory for these suppliers by 50%, for example, will have very little impact on its ability to respond to a disruption. Dell has been able to speed up inventory velocity such that there is only eleven days of inventory on hand. I agree that Ford should think longer term, but with so much uncertainty and gap between what Trump says he wants and what he has achieved, I think it will be difficult to mitigate against supply chain risks going forward. It is the maximum duration that the supply chain can match supply with demand after a node disruption. Successful implementation of virtual integration initiatives will allow supplier companies to work together as one entity. Forecasting analysis — develop new forecasting methods to minimize the risk of inaccurate forecasts.