Preview

The Ford Motor Company Supply Chain Management

Best Essays
Open Document
Open Document
4990 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Ford Motor Company Supply Chain Management
The Ford Motor Company’s Supply Chain Management

Landon Orchard 292 Windermere Court West, London, Ontario, Canada 519-661-7006 Landon Orchard is currently an undergraduate business management major at Ashland University, Ashland, Ohio North Central Ohio APICS Chapter Full-time undergraduate student

The Ford Motor Company’s Supply Chain Management 2

The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and making delivery more efficient.

INTRODUCTION Background of Ford As European and Asian car manufacturers continue to make advancements on the American markets, Ford 's market share will decrease even further. One of the processes that Ford must improve is its supply chain management. By being able to speed up and better interact with suppliers and consumers, Ford will regain lost market share by communicating customer needs between themselves and their suppliers and acting upon these requests quicker and more efficiently. The Ford Motor Company has been the focus of supply chain operations analysts lately as they have begun to revamp their supply chains and how they interact with suppliers and customers. Ford has been a leading automaker and pioneer for the automotive industry for the better part of a century. Established in 1903, the company 's single greatest contribution to automotive manufacturing was the moving assembly line... which was first implemented in 1913. This innovation in the car making industry was one that would send the Ford Motor Company into a global market with mass production of its vehicles. Nineteen years after Ford started producing automobiles, fifteen-million Model T Ford 's had been produced and the Ford



References: 1. Accenture Consulting Company. (2001) Ford Business Challenge, United States, October 1994. Accenture Consulting: Author 2. Banham, R. (2001, July). Road Testing The Ford Supply Chain. Supply and Demand Chain Executive, 1-7. 3. Bosman, R. (2006). Risks Associated with Supply Chain Management. FM Global, 310. 4. Lamothe, R. (2001) Supply Chain Reaction: Logistics Outsourcing Firms Make Their Beachheads in Mexico. Business Mexico Magazine. 1-8 5. No Author. (2007, February) Supply Chain Management. Retrieved from www.nsf.gov/about/history/nsf0050/manufacturing/supply.htm 6. 7. No Author. (2007) Ford. Retrieved on March 25, 2007 from http://www.ford.com No Author. (2003, June). Ford Takes New View on Direct Material Procurement Management. Supply Chain Systems Magazine, 1-2. 8. Peter, J. (2004, October). Ford’s Supplier Parks is a Model for Future Supply Chain Operations in North America. Retrieved March 25, 2007 from http://findarticles.com/p/articles/mi_m3012/is_10_184/ai_n6261228/print 9. Speizer, I. (2006, March 27). Ford: The Right Way Forward? Workforce Management, 1, 24-30.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The two Mexican American characteristics that I saw in the Zoot Suite movie are, “Showing an Oppositional way of thinking, and “Rewrite the Mexican American and Mexican experience back into history”. The movie Zoot Suite was about a play that relived the trial of Henry Reyna, which is based off the real trial of Henry Leyvas. They showed how Mexican Americans in Los Angeles were being treated and how they were wrongly judged due to the way they looked. The “zoot suites” was the style of young Chicanos back in the day, and the police associated crime and violence with their look. The movie clearly expressed the inequality they faced during the jury trial. These are all examples of how the movie used Oppositional way of thinking/ questioning…

    • 222 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    It would be beneficial to adapt the “agile supply chain process” to build upon the current process and address the issue of electric motor deliveries by the existing supplier. The agile supply chain process utilizes strategies aimed at being responsive and flexible to customer needs, while the risks of supply shortages or disruptions are hedged by pooling inventory and other capacity resources. These supply chains essentially have strategies in place that combine the strengths of “hedged” and “responsive” supply chains. They are agile because they have the ability to be responsive to the changing, diverse and unpredictable demands of customers on the front end, while minimizing the back end risks of supply disruptions (Chase, Jacobs, & Aquilano, 2005).…

    • 867 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Ford Motor Company multinational cooperation that uses outsourcing to lower costs and boost productivity. Until the 1980’s Ford had a supply chain that allowed them to control every aspect of the making and distributing of their automobiles. From the steel and rubber plants that make the parts, to building the vehicles, storage and shipping. Though this was a good way for the companies to promote local made in America vehicles it was not however time or cost effective. As a result of competition from other automotive companies Ford made the drastic changes of outsourcing the making of parts and manufacturing to other countries to speed productivity and lower costs.…

    • 572 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Currently, Cracker Jack need a lot of the technology in the manufacturing and R&D, if the advancement of the technology increase in the future, this will be a good opportunities to them to be increase the produce output and reduce the cost to produce a snack.…

    • 3293 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    After reviewing Ford Motor supply chain, we became aware of its very complex nature. Due to this complexity we are forced to search for alternatives to overcome the costly supply chain challenges faced by our industry both now and in the future. The present system has an inefficient control of a large database and a vast and complex network of suppliers.…

    • 1771 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    The need for change was made clear to the GM Company, as customers were more perceptive, powerful and demanding. However, GM’s responsiveness lagged the industry. Furthermore, dealers grew more frustrated by the mix of their inventory. Dealer’s lots were becoming clogged with inventory and in order to clear out the old, GM had to offer sales incentives, squeezing profit margins. Dealers were struggling to get vehicles they wanted as well as vehicles their customers wanted. In addition, special order vehicles had extremely long lead times due to delivery dates were not tracked. The company’s supply chain costs were growing, with high levels of raw materials and work-in-progress inventory, inefficiency, outdated technology, bloated overhead, it was critical for the GM Company to make a change (Cohen & Shoshanah, 2005).…

    • 1790 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Fireside Tire Company

    • 377 Words
    • 2 Pages

    References: Coyle, J., Langley, J.C., Gibson, B.J., Novack, R.A., and Bardi, E.J. (2008). Supply Chain Management: A logistics perspective. South-Western Publishing. Mason, Ohio…

    • 377 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Smith, A., & Sohail, A. S. (2005). Strategic Supply Chain Management Issues in the Automotive Industries. An Australian Perspective, 43.…

    • 3639 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Pick any car model manufactured by a domestic auto maker. For example, consider the 2002 Ford Thunderbird. a. The supply chain for a car typically includes the following components: 1. Suppliers for raw materials 2. Suppliers for parts and subsystems 3. Automobile manufacturer (Ford, in this example). Within a company, there are also different departments, which constitute the internal supply chain: i. Purchasing and material handing ii. Manufacturing iii. Marketing, etc. 4. Transportation providers 5. Automobile dealers b. Many Þrms are involved in the supply chain. 1. Raw material suppliers. For instance, suppliers for steel, rubber, plastics, etc. 2. Parts suppliers. For instance, suppliers for engines, steering wheels, seats, and electronic components, etc. 3. Automobile manufacturer. For instance, Ford. 4. Transportation providers. For instance, shippers, trucking companies, railroads, etc. 5. Automobile dealers. For example, Hayward Ford. c. All companies involved in the supply chain want to maximize their respective proÞts by increasing revenue and decreasing cost. However, companies may employ different 2…

    • 12423 Words
    • 50 Pages
    Powerful Essays
  • Powerful Essays

    In 1913, Henry Ford revolutionized product manufacturing by introducing the first assembly line to the automotive industry. In the 1980’s, Ford picked suppliers based on lowest cost and the overall costs of the supply chain were ignored. Dealing with so many suppliers led to a higher overall costs and a complexity that was difficult to control. In the 1990’s, Ford cut down on the number of suppliers drastically and shifted towards more long term relationships with a set of suppliers that would provide entire vehicle sub systems. Although the number of suppliers were lower, our supply base was different and more complex then the one used by Dell.…

    • 1827 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    After analyzing Ford’s existing supply chain I immediately became aware of its highly complex nature. This high level of complexity combined with other internal and external factors that have pushed Ford to search for solutions in order to overcome the costly supply chain challenges that they are facing and may continue to…

    • 2195 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Ford Mondeo

    • 881 Words
    • 4 Pages

    One of the major issues that Ford had to face was the international integration and selection of suppliers, production scheduling, and supplier relationships. Ford's goals with suppliers were to select suppliers based on merit and also reduce the number of suppliers for their world car. Ford successfully reduced the numbers of suppliers to 227 with a worldwide supplier office and selected these suppliers based on 'best-of-class' components within a worldwide scale. The company also used a tiering system of their suppliers by approaching them long before the production of the Mondeo, which allowed for plenty of time for extensive communication of the vehicle's components. Ford strived for just-in-time production scheduling in order to reduce inventory holding costs, however this method of production was impractical. So, the new assembly sites were positioned within 30 km of suppliers for quick delivery. Ford estimated that their high-volume ordering would save the company $150 per car, and attempted to maintain that savings by asking that all suppliers absorb the costs of all future cost increases. This posed a major threat between Ford and its…

    • 881 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Over the last 30 years, the manufacturing industry has undergone a notable shift in terms of pushing geographic and cultural boundaries. An increased dependence on global trade, offshore labor and a worldwide supply chain are the determining factors for where, what, when and how produced goods reach consumers in an increasingly level global playing field. This shift has been particularly prevalent in the automotive sector, as automotive manufacturers obtain parts from hundreds of suppliers, and the standards for quality are becoming more stringent. A complex organizational structure is therefore required to line up the end-to-end logistics of supply chain management, financials, customer relations and human resources. With a centrally developed and coordinated manufacturing strategy, individual facilities must execute the various tactics for quality management. In this environment, opportunities for business success can be fleeting. Even under ideal circumstances, an unforeseen, outlying factor can determine whether a company wins or loses an important contract. It is critical to establish a competitive advantage in order to simply maintain profits, let alone increase revenues. Businesses can simultaneously reduce costs and remain competitive by investing in process improvements that increase quality. For example, identifying and implementing efficiencies in…

    • 2058 Words
    • 59 Pages
    Powerful Essays
  • Good Essays

    Coyle, J., Langley, C., Gibson, N., Novak, R., Bardi, E., (2009). Supply Chain Management; A Logistics Perspective. Ohio: South-Western Press. 9th Ed..…

    • 810 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    So before you can inspire and lead others, you must be passionate about your own work.…

    • 1475 Words
    • 6 Pages
    Powerful Essays