Ford Motor Company: Supply Chain Strategy

1
Ford Motor Company Supply Chain Strategy

• Presented By Fredonna Walker,
• Samantha Skryme, Treloni Flournoy

2
OVERVIEW

• Based in Dearborn, Michigan
• Largest industrial corporation in the world
• Subsidiaries of Ford include
• Volvo, Lincoln, Mercury, Mazda, Jaguar, Land
  Rover and Aston Martin

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PC INDUSTRY
Threat of New Entrants Economies of scale Skilled
Labor Vertical Integration/Supply Chain Management
STRONG
MIXED
Power of Buyer Companies (B2B) Consumers (B2C)
Power of Supplier Part Suppliers
Competitive Rivalry Dell
WEAK
STRONG
Substitutes Electronic Handheld Devices
WEAK
4
AUTOMOBILE INDUSTRY
Threat of New Entrants Capital Expenditure Economi
es of Scale Brand ID/Loyalty Supply Chain
Management Skilled Labor
WEAK
MIXED
Power of Buyer Dealerships Consumers
Power of Supplier Part Suppliers
Competitive Rivalry Ford
WEAK
STRONG
Substitutes Public Transportation
STRONG
5
DELLS ADVANTAGES OF VIRTUAL INTEGRATION

• JIT Inventory
• Removed retailer, or middle man
• Standardized products and shipping
• Low WIP
• Tightly Coordinated Supply Chain
• Focus shifts to customer

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IMPORTANCE OF THESE ADVANTAGES IN THE AUTO
INDUSTRY

• JIT Inventory (yes)
• Removed retailer, or middle man (no)
• Standardized products and shipping (yes)
• Low WIP (yes)
• Tightly Coordinated Supply Chain (yes)
• Focus shifts to customer (yes)

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DIRECT MODEL IMPLEMENTATION

• Easily removed retailers
• Cut costs
• Simplified buying process
• Drop Shipping
• Sony sends monitors directly to customers

• Cant remove
• retailers
• Test drives
• Impractical delivery
• Limited drop shipping
• Customized features
• Luxury additions

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RECOMMENDATION TO SENIOR EXECUTIVES

• Focus on maximizing customer value
• Shareholder value will follow
• Outsource services
• Contract with service companies
• Use the Ford name and logo
• Provide continuity in customers experience
• Relay product requirement information daily
• Reduce need for banks and ASRSs
• Transition from push to pull manufacturing

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QUESTIONS
COMMENTS