The Ford Motor Company’s Supply Chain Management
Landon Orchard 292 Windermere Court West, London, Ontario, Canada 519-661-7006 Landon Orchard is currently an undergraduate business management major at Ashland University, Ashland, Ohio North Central Ohio APICS Chapter Full-time undergraduate student
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The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and making delivery more efficient.
INTRODUCTION Background of Ford As European and Asian car manufacturers continue to make advancements on the American markets, Ford's market share will decrease even further. One of the processes that Ford must improve is its supply chain management. By being able to speed up and better interact with suppliers and consumers, Ford will regain lost market share by communicating customer needs between themselves and their suppliers and acting upon these requests quicker and more efficiently. The Ford Motor Company has been the focus of supply chain operations analysts lately as they have begun to revamp their supply chains and how they interact with suppliers and customers. Ford has been a leading automaker and pioneer for the automotive industry for the better part of a century. Established in 1903, the company's single greatest contribution to automotive manufacturing was the moving assembly line... which was first implemented in 1913. This innovation in the car making industry was one that would send the Ford Motor Company into a global market with mass production of its vehicles. Nineteen years after Ford started producing automobiles, fifteen-million Model T Ford's had been produced and the Ford Motor Company
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was an industrial giant that spanned the globe (6). Ford was well on its way to becoming a major contributor of vehicles to countries all over the world and on February 24, 1956 the company went public; establishing and consolidating United States, Canadian and Mexican operations. Strategy for Success With this new expansion of its company, the Ford Motor Company needed a strategy for success and connecting these new manufacturing plants with suppliers and customers. Ford's strategy for increasing and maintaining their share of the automotive market is to establish strong interaction between them and consumers by addressing wants and needs at every stage of the purchasing process. This can be done through new products and services that Ford is able to offer. (6) In order to achieve this level of success the Ford auto maker must have a solid foundation of supply chain management to deliver these goals to the company and its anxious consumers. Topics Covered This paper will focus on what Ford has done in the past, what it is doing presently and what can be done in the future to insure that one of the worlds leading automakers continues to hold that position and ultimately take over the number one spot. Possibly the most important part of any corporation is the management of their supplies and how they interact with their suppliers. For a company such as Ford, a corporation that has thousands of suppliers for various models of automobiles, the coordination and interaction among Ford and its suppliers is essential to the businesses success. Along with examining the strategies Ford is utilizing, the paper will dissect the risks and pitfalls associated with supply chain management and what can be done to avoid and eliminate these costly downfalls that could affect a company well past the date of occurrence. Another issue of any organization is in-house problems that may affect the
The Ford Motor...
References: 1. Accenture Consulting Company. (2001) Ford Business Challenge, United States, October 1994. Accenture Consulting: Author 2. Banham, R. (2001, July). Road Testing The Ford Supply Chain. Supply and Demand Chain Executive, 1-7. 3. Bosman, R. (2006). Risks Associated with Supply Chain Management. FM Global, 310. 4. Lamothe, R. (2001) Supply Chain Reaction: Logistics Outsourcing Firms Make Their Beachheads in Mexico. Business Mexico Magazine. 1-8 5. No Author. (2007, February) Supply Chain Management. Retrieved from www.nsf.gov/about/history/nsf0050/manufacturing/supply.htm 6. 7. No Author. (2007) Ford. Retrieved on March 25, 2007 from http://www.ford.com No Author. (2003, June). Ford Takes New View on Direct Material Procurement Management. Supply Chain Systems Magazine, 1-2. 8. Peter, J. (2004, October). Ford’s Supplier Parks is a Model for Future Supply Chain Operations in North America. Retrieved March 25, 2007 from http://findarticles.com/p/articles/mi_m3012/is_10_184/ai_n6261228/print 9. Speizer, I. (2006, March 27). Ford: The Right Way Forward? Workforce Management, 1, 24-30.
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