Ford

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Ford

  1. 1. Ford Motor Company: Supply Chain Strategy Presented By: Fredonna Walker, Samantha Skryme, & Treloni Flournoy
  2. 2. OVERVIEW <ul><li>Based in Dearborn, Michigan </li></ul><ul><li>Largest industrial corporation in the world </li></ul><ul><li>Subsidiaries of Ford include: </li></ul><ul><ul><li>Volvo, Lincoln, Mercury, Mazda, Jaguar, Land Rover and Aston Martin </li></ul></ul>
  3. 3. PC INDUSTRY… Competitive Rivalry Dell Power of Supplier Part Suppliers Power of Buyer Companies (B2B) Consumers (B2C) Substitutes Electronic Handheld Devices Threat of New Entrants Economies of scale Skilled Labor Vertical Integration/Supply Chain Management WEAK STRONG WEAK STRONG MIXED
  4. 4. AUTOMOBILE INDUSTRY… Competitive Rivalry Ford Threat of New Entrants Capital Expenditure Economies of Scale Brand ID/Loyalty Supply Chain Management Skilled Labor Power of Supplier Part Suppliers Power of Buyer Dealerships Consumers Substitutes Public Transportation WEAK WEAK STRONG STRONG MIXED
  5. 5. DELL’S ADVANTAGES OF VIRTUAL INTEGRATION <ul><li>JIT Inventory </li></ul><ul><li>Removed retailer, or “middle man” </li></ul><ul><li>Standardized products and shipping </li></ul><ul><li>Low WIP </li></ul><ul><li>Tightly Coordinated Supply Chain </li></ul><ul><li>Focus shifts to customer </li></ul>
  6. 6. IMPORTANCE OF THESE ADVANTAGES IN THE AUTO INDUSTRY <ul><li>JIT Inventory (yes) </li></ul><ul><li>Removed retailer, or “middle man” (no) </li></ul><ul><li>Standardized products and shipping (yes) </li></ul><ul><li>Low WIP (yes) </li></ul><ul><li>Tightly Coordinated Supply Chain (yes) </li></ul><ul><li>Focus shifts to customer (yes) </li></ul>
  7. 7. DIRECT MODEL IMPLEMENTATION <ul><li>Easily removed retailers </li></ul><ul><ul><li>Cut costs </li></ul></ul><ul><ul><li>Simplified buying process </li></ul></ul><ul><li>Drop Shipping </li></ul><ul><ul><li>Sony sends monitors directly to customers </li></ul></ul><ul><li>Can’t remove </li></ul><ul><li>retailers </li></ul><ul><ul><li>Test drives </li></ul></ul><ul><ul><li>Impractical delivery </li></ul></ul><ul><li>Limited drop shipping </li></ul><ul><ul><li>Customized features </li></ul></ul><ul><ul><li>Luxury additions </li></ul></ul>
  8. 8. RECOMMENDATION TO SENIOR EXECUTIVES <ul><li>Focus on maximizing customer value </li></ul><ul><ul><li>Shareholder value will follow </li></ul></ul><ul><li>Outsource services </li></ul><ul><ul><li>Contract with service companies </li></ul></ul><ul><ul><li>Use the Ford name and logo </li></ul></ul><ul><ul><li>Provide continuity in customer’s experience </li></ul></ul><ul><li>Relay product requirement information daily </li></ul><ul><ul><li>Reduce need for banks and ASRSs </li></ul></ul><ul><ul><li>Transition from “push” to “pull” manufacturing </li></ul></ul>
  9. 9. QUESTIONS COMMENTS

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