a07 ford motor

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    SUPPLY CHAIN STRATE

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    Ford was…• Incorporated in 1973 by Henry Ford.• Second largest industrial corporation in the world• More than $1 billion re!enue and 37"#""" ep• %perations spanned across &"" countries.•  'he copany had produced an e(cess o) &*" il

    !ehicles.

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    Ford+s abitious restructuring plan.• Merging ,orth -erican# uropean and Internat

    autooti!e opserations into a single global orga• 0roduct de!elopent acti!ities consolidated int

    enters 42s5.•

    Ma6ing processes and products globally cooeliinate redundancies in organi/ation proces

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    • Ford had se!eral thousand suppliers o) productaterial In late 198"+s which they decreased d199"+s

    • ong:ter relationships with a subset o) !ery ccost e;cient suppliers who pro!ided entire !ehsystes who would deal with tier & and tier 3 s

    • Ford assisted its suppliers in ipro!ing their op!ia techniM and S0.

    • In e(change Ford e(pected yearly price reducti

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    • Modeled roughly on 'oyota 0roduction Syste.• Ford 0roduction Syste 4F0S5 ? a ulti:year pro@ec

    drew on internal and e(ternal e(pertise.• e!el 0roduction and o!e to a ore pull:based s• Iportant part o) F0S was SMF ASynchroni/ed Mat

    FlowBwhich iparted Synchroni/ed production# coCow and Stability throughout the process.

    • - 6ey to Synchronous Material Flow 4SMF5 was DInSe

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    • educe custoers order to deli!ery tie )ro 1 days.

    •  'o achie!e this they had to )orecast the custoer )ro their dealers.

    • - iniu o) 1 days o) !ehicle in each asseblyorder ban6.

    • egional i(ing centres that optii/e schedules adeli!eries o) Gnished !ehicles !ia ail 'ransportati

    • obust order aendent process to allow !ehicleaended )or inor color and tri !ariations withosubit new orders.

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    • %n =uly 1# 1998 Ford launched the Grst o) its Ford

    ,etwor6 4F,5 !entures in 'ulsa# newly )ored FoIn!estent nterprises opany 4FIo5 whose 0goals were:  'o be a test bed )or best practices in retail distri

    dri!e those practices throughout the dealer netw

     'o create an alternate distribution channel to conew# publicly:owned retail chains

    • F, bought all the Ford dealers in a local ar6et sdealers were in copetition against the realD cosuch as M# 'oyota# Honda# rather than with each

    Showroos would ha!e a consistent loo6 on the o

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    • eplacing the 0HLSI- %M0%,,'S o) the co

    with I,F%M-'I%, using internet as its bac6bone•  'he usiness owns only their brands and clients.• liinated need to physically produce# ship or han

    products since they are outsourced.

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    • nhancing custoer !alue by letting custoers w

    allowed to conGgured 0+s according to their coneeds

    • liinate iddlean•  'he ustoer e(perience could be enhanced by d

    )ro custoer )eedbac6.

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    N !s F%N

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    • Minii/e Suppliers• liinate Middlean• Forecasting Neand• etter counication between suppliers and

    anu)acturers.

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    • For supplier networ6 had any layers while dell h)ew# so )ord has to try to decrease the layers

    • ower supplying tires does not ha!e the I' 6nowleis di;cult to ipleent =I'

    •  'ry to inii/e anu)acturing units

    • Ford sell ost o) cars through dealership# Nell )ollosales odel

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    IF F%N IM0M,'S NS M%N•

    Ford will be able to increase its port)olio.•  'here will be ipro!eents in supply chain that wi

    )ord and the custoer howe!er the anu)acturing ser!icing process cople(ity ay increase and atrouble

     'echnical edge o!er e(isting copetitors.• Supplier and F%N counication will be uch be

    shrin6 the supplier networ6.

    IF F%N N%S ,%' IM0M,' NS M%N•

    Ford ay loose out o) inno!ation as copetitors a

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    • e:ngineer its e(isting Supply chain to gain techni•

    Nell and Ford !ary a lot in their organi/ational strucFord+s business odel is )ar too cople(.

    • Howe!er# Ford can ipleent siilar odel and eliunnecessary physical coponents and per)or 2irtIntegration in a suitable way.

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