Premium Essay

Buyer

In: Business and Management

Submitted By cgong4
Words 3148
Pages 13
Ford Motor Company

Table of Contents
Executive Summary 3
Introduction 4
Issue Identification 5 - 7
Environment and Root Cause Analysis 8 - 9
Alternatives and Options 10-11
Recommendations 12
Implementation 13-14
Monitor and Control 15
Conclusion 16

Ford Motor Company

Executive Summary
As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall performance. Managers could overcome the complex and inaccurate manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. Further improved Supply Chain management will improve Supply Chain responsiveness and increase shareholder value to keep investors interested in the company.

Ford Motor Company

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