Ford Motor Company : Supply Chain Strategy

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Ford Motor Company: Supply Chain Strategy

Attn: Jac Nasser, CEO

Dear Mr. Nasser

Please find attached the report as requested

Yours Truly,

Teri Takai

Ford Motor Company: Supply Chain Strategy
Case Study Response
Executive Summary
As Director of Supply Chain Systems and decision maker on if we should proceed with the Virtual Integration Model I have carefully analysed all aspects of this model to see if it could work within Ford and the Automobile industry. We have a rich history of success and working through difficult challenges and I have no doubt that we will do so again with the right decision on this model.
The Automobile industry is a complex one with many suppliers, parts, dealerships, competitors and all this is now happening in a global market. This complexity makes efficiencies difficult to implement and drives up the costs our supply chain. Many efficiencies would require the cooperation of both internal and external parties and would require significant investment. Ford’s main problem with their current system is the inefficient usage of their huge data base, the complex network of suppliers, the presence of many independent distributors who are making forecasting difficult and the lack of direct communication with customers.
Through my review I have come to the conclusion that the full implementation of the Dell Model would not work; the way customers buy cars and computers in this day and age is to different. With the high value of a vehicle customers want to test out the product and therefore we will need to maintain the dealerships but I do believe aspects of this model need to be implemented to lead to major cost savings with Fords Supply Chain. In this report I have laid out the items we should implement, a time line and the metrics for review.
Ford Motor Company: Supply…...

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