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Ford Case Study - Supply Chain

In: Business and Management

Submitted By RRB0803
Words 4378
Pages 18
• offered competitive prices, high levels of support
• properly identify market segments,
• analyze the requirements and profitability of each segment, and develop more accurate demand forecasts.
• cut on the standard supply chain cycle and deliver goods directly from the manufacturer to the customer.
• turn its inventory over 60 times a year
• introduced new products without having to clear out old inventory in the channel
• minimize the rapid depreciation costs that mark the PC industry
• operated on a negative cash conversion cycle – by receiving payment from its customers before it paid its suppliers for components
• build strong, stable relationships with the large corporations and other organizations who are its core customers

Issue Identification
Ford continues to face increased completion from foreign competitors while operating in an industry that is experiencing significant over-capacity. In the face of the challenges presented to us, we must determine if Ford should embrace the direct business model which utilizes “virtual integration” that has driven Dell to become a clear leader in their industry. Further, if we chose to utilize “virtual integration” based on the Dell model, we will need to develop and implement significant changes in the some of our most fundamental supply chain operations.

In addition, we must determine how Ford should utilize emerging information technology to transform the way we interact with supply chain members. While progress in this area will be integral should Ford choose to pursue “virtual integration”, it is also a stand-alone issue even if Ford does not choose to pursue the “virtual integration” approach to supply chain management.
It is imperative our decisions regarding these issues align with Ford’s key strategic objectives of placing emphasis on shareholder value and customer responsiveness....

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