Table of Contents
Executive Summary 3
Issue Identification 5
Environmental and Root Cause Analysis 6
Alternatives and Options 8
Monitor and Control 12
After reviewing Ford Motor supply chain, we became aware of its very complex nature. Due to this complexity we are forced to search for alternatives to overcome the costly supply chain challenges faced by our industry both now and in the future. The present system has an inefficient control of a large database and a vast and complex network of suppliers.
We need to change our supply chain in order to make it more cost effective and profitable. After careful analysis we recommend the implementation of a partial virtual integration system, similar to the system used by Dell Computers. With this system, Ford will use information technology and the internet to interact and transact with both their suppliers and their customers. Ford can increase their sales by providing better customer service and faster communication from the supply end through to the manufacturing division and right on to their end user, the customer.
This system will be implemented with their existing supply chain so Ford will cover both markets at the same time. If Ford concentrated only on the virtual system their competition would put them out of business, so by running both systems simultaneously will give them an edge over their competition.
Ford Motor Company is the second largest industrial corporation in the world with revenues of more than $144 billion and about 370,000 employees. Their operations span more than 200 countries worldwide. The company has both the design and manufacturing of cars division and they have a financial services division. Significant revenues and profits are realized in