Automotive Industry and Ford
Executive summary
Ford Motor Company is based in Dearborn, Michigan; it is the second largest industrial corporation in the world, with revenues of more than 144 billion and about 370,000 employees. Operations span 200 countries. Although ford obtains significant revenues and profits from its financial services subsidiaries, the company’s core business remains the design and manufacture of automobiles for sale on the consumer market. Since Henry Ford, founder of Ford, incorporated in 1903, the company has produced over 260 million vehicles.
For this case study I have decided to implement Virtual Integration at Ford. However the supply chain strategy of Virtual Integration that is used successfully by several companies such as Dell and is a revolutionary business strategy would not suit the needs of Ford Motor Company. I will focus on other aspects that I feel are most suitable for Ford and tailor it to meet their needs.
I predict that by using virtual integration, Ford can expect to minimize its suppliers, eliminate middlemen, and have more flexibility in its supply chain by using virtual integration. In addition to that, like Dell, Ford can boost its sales by providing better customer service and provide faster communication between suppliers, manufacturers, and customers in the value chain.
Obviously Dell and Ford are part of two different types of industry, one being a computer manufacturing company and the other part of the auto industry, it does not seem to right to implement exactly the same form of "virtual integration" that Dell is currently using. In fact, there would be several challenges and risks that Ford would face by implementing the same type of virtual integration Dell used.
Key Assumptions
- The existing supply base was in many respects a product of history.
- In 1980s there were several thousand suppliers of production materials in a complex network of business relationships.
- Suppliers were
Ford Motor Company is based in Dearborn, Michigan; it is the second largest industrial corporation in the world, with revenues of more than 144 billion and about 370,000 employees. Operations span 200 countries. Although ford obtains significant revenues and profits from its financial services subsidiaries, the company’s core business remains the design and manufacture of automobiles for sale on the consumer market. Since Henry Ford, founder of Ford, incorporated in 1903, the company has produced over 260 million vehicles.
For this case study I have decided to implement Virtual Integration at Ford. However the supply chain strategy of Virtual Integration that is used successfully by several companies such as Dell and is a revolutionary business strategy would not suit the needs of Ford Motor Company. I will focus on other aspects that I feel are most suitable for Ford and tailor it to meet their needs.
I predict that by using virtual integration, Ford can expect to minimize its suppliers, eliminate middlemen, and have more flexibility in its supply chain by using virtual integration. In addition to that, like Dell, Ford can boost its sales by providing better customer service and provide faster communication between suppliers, manufacturers, and customers in the value chain.
Obviously Dell and Ford are part of two different types of industry, one being a computer manufacturing company and the other part of the auto industry, it does not seem to right to implement exactly the same form of "virtual integration" that Dell is currently using. In fact, there would be several challenges and risks that Ford would face by implementing the same type of virtual integration Dell used.
Key Assumptions
- The existing supply base was in many respects a product of history.
- In 1980s there were several thousand suppliers of production materials in a complex network of business relationships.
- Suppliers were