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Product Lineup for the Upcoming Year Often Differed from Year to Year

In: Business and Management

Submitted By daity21
Words 1104
Pages 5
Executive Summary

Ford Motor Company, as the second largest industrial corporation in the world, face to the challenge of significant change in their model as Dell. Unlike traditional business model, Dell's direct model could save its time and reduce cost so that Dell could have competitive cost advantages. However, Ford high complex business model is hard to implement the Virtual integration plan easily.
Therefore, I recommended the partial implementation and execution of the virtual integration of Dell’s direct model. Although there are several key differences between these two industries, Dell’s strategy(Exhibit 3) still could be applied to Ford. Under this model, Ford can use the information technologies to interact and transact from their supplier to customer. Reduce the layers would increase both operation control efficiency and the flexibility in supply chain. Every big change may cause high risk of the issues during the implementations. Ford should build the special group the Monitor the process in order to make the transactions to go smoothly.

Issue Identification

The growth of this industry and new technology pushed Ford need to do the redesign for their supply chain as Dell or not.
Issues for existing Supply Base:
 No Direct feedback from customer.
 No flexible for supplier management.
 Long lead time for the parts.
 Large data base of suppliers and network
 Lack of technology and technological sophistication that prevail in the supply chain, especially at lower tiers (Exhibit 1)

Virtual integration would require changes in fundamental operations. Compare with Dell, Ford cannot make the change easily because they have a large data base of the business, thousand suppliers and operates in a more complex network of business relationship.

Environmental and Root Cause Analysis

Ford founded on 1903 and now…...

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