Ford Motor Co.

Written Cases Study: Ford Motor Co.

Table of Contents

Executive Summary 3

Issue Identification 4

Issue Identification including Root Cause Analysis 5

Recommendations 7

Implementation Plan 8

Monitor and Control 10

References 11

Executive Summary

The Ford Motor Company, in the past the second largest industrial corporation in the world, with revenues of more than $144 billion and about 370,000 employees, and operations in 200 countries, is currently faced with the need to improve quality of interaction with the suppliers and customers with emphasis on shareholder value and customer responsiveness.

The predicament exists in the company dubious position in whether to make a decision towards moving ahead with the “virtual integration” modeling the Ford supply chain on that of companies like Dell, or being more conservative and, provided the differences between the auto and computer manufacturing business, not to engage in virtual integration, but rather think about feasible redesign of the supply chain process.

In this case study response I will be providing recommendation regarding the most beneficial strategic supply chain model based on analysis of virtual integration versus vertical integration for the Ford supply chain management.

Issue Identification

* Existing interaction with multi-layer supplier network.

* Complexity of the automotive product.

* Difference in IT capabilities of tier one, tier two suppliers and sub-suppliers.

* High inventory levels.

* Customer responsiveness.

* Flow of information real time.

* The role of Ford Retail Network in SCM.

| Issue Identification including Root Cause Analysis1.Existing interaction with multi-layer supplier networkThe current interaction with suppliers is based on the multi-layer model, which in many respects, a product of history. The advantage of the existing supplier model is in fostering relationship...