Ford Case Study
Executive Summary
Although Ford is a successful company in the world, with increasing competition and new technology improvement, Dell’s succeed by implementing “Virtual integration” , Teri Takai, Director of supply chain system, has to choose if Ford will make a change implementing Virtual integration based on Dell's model, or just stay as Ford is currently doing. Some are arguing that virtual integration is not feasible for Ford because of Ford’s business is totally different from Dell and business complexity makes Ford no way to go that road. However, others believe the Dell’s model will succeed in Ford as well because of new information technology and similar business principle will make it work in Ford.
Ford should implement the virtual integration model even Ford is much more complex then Dell, but Ford can not simply copy Dell’s model because the vehicles are not like a computer that you can order online and delivery by a carrier. They need to create a plan based on Dell model but focus on Ford’s business and conditions.
Teri Takai should be the key person and work together with IT, Purchaser s, Sales and accounting department to start the program: to reduce inventory by building strategic supplier relationship . the ordering system should change form old model ( PO to suppliers, products go to Ford warehouse and then to distribution centers, dealers then customers ) to the new model ( orders to suppliers then products to distribution channel ) that is heavily relying on information sharing and communication.
A VP and IT, sales, purchasing accounting should be involved to find strategic suppliers, good information systems further to make suppliers and customers their in house partners.
Even a good plan still needs to be monitored and adjusted so the team should sit together regularly and evaluate and improve the program.
Introduction
The Ford Motor Company, Based in Dearborn, Michigan, was the second largest
Although Ford is a successful company in the world, with increasing competition and new technology improvement, Dell’s succeed by implementing “Virtual integration” , Teri Takai, Director of supply chain system, has to choose if Ford will make a change implementing Virtual integration based on Dell's model, or just stay as Ford is currently doing. Some are arguing that virtual integration is not feasible for Ford because of Ford’s business is totally different from Dell and business complexity makes Ford no way to go that road. However, others believe the Dell’s model will succeed in Ford as well because of new information technology and similar business principle will make it work in Ford.
Ford should implement the virtual integration model even Ford is much more complex then Dell, but Ford can not simply copy Dell’s model because the vehicles are not like a computer that you can order online and delivery by a carrier. They need to create a plan based on Dell model but focus on Ford’s business and conditions.
Teri Takai should be the key person and work together with IT, Purchaser s, Sales and accounting department to start the program: to reduce inventory by building strategic supplier relationship . the ordering system should change form old model ( PO to suppliers, products go to Ford warehouse and then to distribution centers, dealers then customers ) to the new model ( orders to suppliers then products to distribution channel ) that is heavily relying on information sharing and communication.
A VP and IT, sales, purchasing accounting should be involved to find strategic suppliers, good information systems further to make suppliers and customers their in house partners.
Even a good plan still needs to be monitored and adjusted so the team should sit together regularly and evaluate and improve the program.
Introduction
The Ford Motor Company, Based in Dearborn, Michigan, was the second largest