Ford Case Study
SCMA
Ford Motor Company
Case Study
Contents
Executive Summary 2
Issue identification with Root Cause Analysis 3
Understanding Forecasts with the new Ford 2000 Projects 3
Ford’s current supplier base is excessive 4
Purchasing structure within the Ford organization 4
Environmental Factors 5
Alternatives 6
Keep its existing supply chain 6
Recommendation 6
Create a vertically integrated supply chain based on Dell's model 6
Create a website for direct purchases 7
A pull system should be implemented completely 7
Implementation 8
Monitor and control 8
Executive Summary
American car manufacturer, Ford Motor Company is contemplating its future with regards to implementing new technologies that will change the way it interacts with its supplier base. Fords current supplier base is large and don’t align strategically with fords manufacturing process. Teri Takai, Director of Supply Chain Systems at Ford is investigating recommendations made by senior executives to model there supply chain after the Dell Model which involves vertical integration of its supply chain partners and processes.
The purpose of this report is to identify what Ford should do to use emerging technologies to better interact with its suppliers and if the Dell model will work within their supply chain processes. Issues that need to be addressed are how will Ford understand forecasts based on new Ford 2000 projects, Fords current supplier base is to large and the purchasing structure is not being involved in aspects of product development that could potentially save costs.
These concerns need to be addressed with the implementation of a pull method at their manufacturing facilities, corresponding with the Dell Model. Creating a website that allows consumers direct access to customization and products, using the website and information transfer to create an integrated supply chain that can inform suppliers of when to ship products as they are needed. These steps will help Ford move forward in this
Ford Motor Company
Case Study
Contents
Executive Summary 2
Issue identification with Root Cause Analysis 3
Understanding Forecasts with the new Ford 2000 Projects 3
Ford’s current supplier base is excessive 4
Purchasing structure within the Ford organization 4
Environmental Factors 5
Alternatives 6
Keep its existing supply chain 6
Recommendation 6
Create a vertically integrated supply chain based on Dell's model 6
Create a website for direct purchases 7
A pull system should be implemented completely 7
Implementation 8
Monitor and control 8
Executive Summary
American car manufacturer, Ford Motor Company is contemplating its future with regards to implementing new technologies that will change the way it interacts with its supplier base. Fords current supplier base is large and don’t align strategically with fords manufacturing process. Teri Takai, Director of Supply Chain Systems at Ford is investigating recommendations made by senior executives to model there supply chain after the Dell Model which involves vertical integration of its supply chain partners and processes.
The purpose of this report is to identify what Ford should do to use emerging technologies to better interact with its suppliers and if the Dell model will work within their supply chain processes. Issues that need to be addressed are how will Ford understand forecasts based on new Ford 2000 projects, Fords current supplier base is to large and the purchasing structure is not being involved in aspects of product development that could potentially save costs.
These concerns need to be addressed with the implementation of a pull method at their manufacturing facilities, corresponding with the Dell Model. Creating a website that allows consumers direct access to customization and products, using the website and information transfer to create an integrated supply chain that can inform suppliers of when to ship products as they are needed. These steps will help Ford move forward in this