Ford Motor Company/Dell Computer
Executive Summary:
After carefully analyzing Ford’s existing supply chain, I realized the main issues that Ford have are its large base of suppliers, suppliers does not have enough IT capability to support the requirements of Ford and it appears that Ford and their dealers have not too much communication in obtaining the accurate forecast. Meanwhile I am also aware of its highly complex nature of auto manufacturing comparing with computer industry. It would be applicable for the customers to place order online as all their concerns are the price and specification. However with several 10 thousand dollars’ car, the customers would prefer to go to dealership to do test drive. Thirdly, I also realized it is an urgent need to modify their supply chain to make it more cost effective and more profitable. Therefore my decision is the partial implementation and execution of the virtual integration direct business model that has been used by Dell. Through this model, Ford will use the emerging information technologies and internet as well as new ideas from high tech industries in order to provide forecast and replenishment plan to their suppliers and allow end users to place order directly and make modification. Furthermore, Ford can boost its sales by providing better customer service and by having faster communication between suppliers, manufacturers, and customers in the value chain. This proposed system will have to run concurrently with the existing supply chain so that Ford will cover both market segments at the same time. Ford should set up a special department in order to handle this new business process. Investment in new high tech IT equipments is required as well as training should be provided before the new project’s kick off date. Suppliers’ computers should be linked to Ford’s master computer network and customers should be made aware of this new shopping experience for buying an automobile. To measure the performance of this model, Ford should schedule
After carefully analyzing Ford’s existing supply chain, I realized the main issues that Ford have are its large base of suppliers, suppliers does not have enough IT capability to support the requirements of Ford and it appears that Ford and their dealers have not too much communication in obtaining the accurate forecast. Meanwhile I am also aware of its highly complex nature of auto manufacturing comparing with computer industry. It would be applicable for the customers to place order online as all their concerns are the price and specification. However with several 10 thousand dollars’ car, the customers would prefer to go to dealership to do test drive. Thirdly, I also realized it is an urgent need to modify their supply chain to make it more cost effective and more profitable. Therefore my decision is the partial implementation and execution of the virtual integration direct business model that has been used by Dell. Through this model, Ford will use the emerging information technologies and internet as well as new ideas from high tech industries in order to provide forecast and replenishment plan to their suppliers and allow end users to place order directly and make modification. Furthermore, Ford can boost its sales by providing better customer service and by having faster communication between suppliers, manufacturers, and customers in the value chain. This proposed system will have to run concurrently with the existing supply chain so that Ford will cover both market segments at the same time. Ford should set up a special department in order to handle this new business process. Investment in new high tech IT equipments is required as well as training should be provided before the new project’s kick off date. Suppliers’ computers should be linked to Ford’s master computer network and customers should be made aware of this new shopping experience for buying an automobile. To measure the performance of this model, Ford should schedule