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Ford Motor Company/Dell Computer

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Submitted By Cxydkmn
Words 1204
Pages 5
Issue of Identification:
• Large data base of their suppliers, no too much partnership relationship with suppliers, no design involvement from suppliers
Ford has several thousand suppliers and operates in a more complex network. Well Dell has only about 50 suppliers. Meanwhile Ford needs several thousands of parts to produce a product while Dell needs less than hundred parts. Suppliers were picked primarily based on cost and little regard was given to overall supply chain cost.
There are already lots of good component manufacturers out there. Ford should focus the field where it could create value such as introducing the best product in the market and set up partnership via key suppliers instead of developing the components or managing the component suppliers. With the partner relationship and involvement of suppliers in design phases, the key suppliers will feel more secure and will bring new design to Fords, will take initiative to manage JIT inventory, trouble shoot the quality issues on site and etc to ensure Win-Win. This will benefit Ford to reduce inventory, increase return on the asset and reduce the cycle time. Meanwhile Ford could put on more focus to the consumer to be able to forecast the demand accurately.

• Supplier lack of up to date IT infrastructure:
1st Tier suppliers had well developed IT capabilities but not able to invest in new technologies at the Rate Ford itself could. And IT maturity decreased rapidly in lower tiers of the supply chain. While Ford need up to date IT infrastructure from suppliers to stay up to speed in managing their production operations. The lack of proper IT technology could result in miscommunication and lack of coordination between the supply partners and the outcome could be a higher order lead time, higher cost and operational hassle.

• No Direct feedback from the customers
Dell sell direct to customers,

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