Dell Virtual Supply Chain vs Ford Vertical SC
Ford Motor Case
Table of Contents
Executive Summary 3
Issue Identification and Root Case Analysis 4
Alternatives and Options 7
Recommendations 8
Implementation Plan 9
Monitor and Control 10
Conclusion 11
Exhibits 12
Executive Summary
The first glance at Ford’s existing supply chain shows its highly complex nature. This high level of complexity includes different from Dell relationships not only with suppliers but also with dealers and customers. All these factors pushed Ford to search for solutions in order to overcome the costly supply chain challenges that they are facing and may continue to face in the future. Ford’s major difficulties in the present system include the inefficient control of the large database and complex network of suppliers, the existence of independent distributors and their inability to communicate and serve their customers directly.
Realizing an urgent need to modify their supply chain in order to make it more cost effective and more profitable, my decision as Teri Takai is partial implementation and execution of the virtual integration direct business model invented by Dell. Through this model Ford will use the emerging information technologies and internet as well as new ideas from Hi Tech industry in order to interact and transact with their suppliers and end users. Furthermore, Ford can boost its sales by providing better customer service and improving communication between all tiers: suppliers,
Table of Contents
Executive Summary 3
Issue Identification and Root Case Analysis 4
Alternatives and Options 7
Recommendations 8
Implementation Plan 9
Monitor and Control 10
Conclusion 11
Exhibits 12
Executive Summary
The first glance at Ford’s existing supply chain shows its highly complex nature. This high level of complexity includes different from Dell relationships not only with suppliers but also with dealers and customers. All these factors pushed Ford to search for solutions in order to overcome the costly supply chain challenges that they are facing and may continue to face in the future. Ford’s major difficulties in the present system include the inefficient control of the large database and complex network of suppliers, the existence of independent distributors and their inability to communicate and serve their customers directly.
Realizing an urgent need to modify their supply chain in order to make it more cost effective and more profitable, my decision as Teri Takai is partial implementation and execution of the virtual integration direct business model invented by Dell. Through this model Ford will use the emerging information technologies and internet as well as new ideas from Hi Tech industry in order to interact and transact with their suppliers and end users. Furthermore, Ford can boost its sales by providing better customer service and improving communication between all tiers: suppliers,