Ford Motors' Supply Chain Framework

1. GROUP MEMBERS
AMRIK SINGH
SUKHJINDER S PUREWAL
MANPREET KAUR
PRIYANKA GUJRAL
DHRUV PATEL
HIREN AHIR

2. BACKGROUND OF THE COMPANY
 Founded in 1903 by Henry Ford
 In 2010 Ford was ranked 2nd best USA based automobile manufacturer
 Also it was listed at the eighth position in 2010 among “fortune 500”
 It produced 5.532 billion automobiles in 2008 and generated an annual
revenue of 118.3 billion in 2009

4. Supply Chain
Management
Model of
Ford
To Build
Strong
Relationships
Shared
Commitment
& Supplier
Capabilities
Collaborating
throughout
Automotive
Industry

5. Inventory Management is of Two
Types
just-in-time inventory
 the economic-order
quantity decision model
For Example- Ford Dealership
(UCS Tracking System)

6. Demand Forecasting
 Previously- Web visitor activities
 At Present- Based on historical
data

7. Procurement
OLD-
 Multiple suppliers
 Common spot purchases
 Minimal information exchange
 Paper and labor intensive
NEW-
 Selected suppliers
 Elimination of spot purchases
 High level of information exchange
 Electronic process

8. Improvement in quality
Cost savings
Staff benefits
Customer Benefits

9. Production Planning
 Visualization & Techniques
 Inventory charges
 Overtime wages
 Workplace planning system

10. Types of Warehouses
 Public Warehouse
 Private Warehouse
 Bonded Warehouse

11. Modes of Transportation
Roadways
Railways
Airways
Waterways

12.  Ford Protection Plans & Warranties
 Ford offers & Financial Services
 Ford Extended Service Plan
 Customer Support Centre

13. Performance Measurement
 Elimination of potential risk to
ensure continuous supply chain
management
 Utilization of SIX SIGMA with Penske
to enhance supply chain
management
 Primary objective is to maximize
carrier service and cost-cutting

14. Technology & change in
supply chain system of
ford in past 10 years.
 Current scenario
 CAD System
 Globalization