Ford Motor Company Supply Chain Strategy

11/12/2015

11/12/2015

Ford Motor Company: Supply Chain Strategy

Ford Motor Company: Supply Chain Strategy

Table of Contents

Executive Summary 2

Issues 3

Low Shareholder value 3

Order-To-Delivery Times 3

Suppliers IT 4

Global Competition 4

Environmental Analysis 4

Internal 4

External 5

Alternatives and Options 6

Acquisitions/Partnerships 6

Supplier Relationships 6

Customer Relationships 6

Increase Virtual Integration 7

Implement Portal Approach to Buying 8

Recommendations 8

Implementation 9

Improve Supplier Relationships 9

Improve Customer Relationships 10

Monitor and Control 10

Conclusion 11

Exhibit 1 – Sales Gain Calculation 12

Exhibit 2 - SWOT Analysis 13

Exhibit 3 - Balanced Score Card 14

Executive Summary

Ford should not fully implement virtual integration; they should keep their current traditional model as eliminating distribution channels is not logical for an automobile manufacturer. The automobile industry is vastly different from the computer industry and not all best practices can be simply copied from one and pasted to the other. Ford should instead work on improving supplier and customer relationships in an attempt to add value for both their customers and shareholders.

This recommendation addresses the main issues of low shareholder value and high Order-to-Delivery times and subsequent causes of these issues which are indicated in the following report.

Ford can implement this recommendation by not changing their traditional business model, reviewing both partnership drivers and facilitators, focusing on reducing inventory and increasing speed, eliminating annual demands for price reductions, segmenting their customers into specific groups, scheduling meetings with customers, and training sales-account managers to lead customers through a discussion of their future automobile needs.

Issues

Low Shareholder value

Ford’s low shareholder value could be related to...