Ford Motor Company Case Study
Table of Contents
Executive Summary
Issue Identification
Root Cause and Analysis
Recommendations
Monitor and Control
Conclusion
Executive Summary
As Teri Takai, Director of Supply Chain Systems, the purpose of this report was to determine if
implementing new technologies would be beneficial for Ford Motor Company and in the way it interacts
The major findings indicate that there are several issues at Ford: The purchasing's job responsibilities are
extremely isolated and protected, there is a lack of communication between Ford and their enduser
customers, there is a limited understanding in the current technology in place among suppliers, and there
is large amount of suppliers and distribution centres.
This report recommends that Teri Takai implements the virtual integration model similar to the model
used by Dell. This model has been extremely successful for Dell, however since Ford and Dell are two
different types of industries, Teri Takai should partially implement it. Completely implementing the virtual
integration model would not be beneficial for Ford since customers want to test and feel the car before
they buy it. When buying a computer, customers do not need to test it beforehand.
Implementing the virtual integration model would begin in the short term. By offering online shopping,
keeping distribution centres, and linking Ford's system with all suppliers and distributors to see
information transmitted instantly, lead times will decrease and forecasts will be more accurate. This will
enable Ford to develop longer and more close relationships with their suppliers, and provide better and
faster service to their customers and in turn increase sales.
The following is a list of short term issues identified at Ford Motor Company:
● Purchasing activities organization
● Lack of communication with endcustomers
The long term issues discovered are the following:
● The
Executive Summary
Issue Identification
Root Cause and Analysis
Recommendations
Monitor and Control
Conclusion
Executive Summary
As Teri Takai, Director of Supply Chain Systems, the purpose of this report was to determine if
implementing new technologies would be beneficial for Ford Motor Company and in the way it interacts
The major findings indicate that there are several issues at Ford: The purchasing's job responsibilities are
extremely isolated and protected, there is a lack of communication between Ford and their enduser
customers, there is a limited understanding in the current technology in place among suppliers, and there
is large amount of suppliers and distribution centres.
This report recommends that Teri Takai implements the virtual integration model similar to the model
used by Dell. This model has been extremely successful for Dell, however since Ford and Dell are two
different types of industries, Teri Takai should partially implement it. Completely implementing the virtual
integration model would not be beneficial for Ford since customers want to test and feel the car before
they buy it. When buying a computer, customers do not need to test it beforehand.
Implementing the virtual integration model would begin in the short term. By offering online shopping,
keeping distribution centres, and linking Ford's system with all suppliers and distributors to see
information transmitted instantly, lead times will decrease and forecasts will be more accurate. This will
enable Ford to develop longer and more close relationships with their suppliers, and provide better and
faster service to their customers and in turn increase sales.
The following is a list of short term issues identified at Ford Motor Company:
● Purchasing activities organization
● Lack of communication with endcustomers
The long term issues discovered are the following:
● The