Ford Motor Executive Summary

Ford Motor Company

Executive Summary

The Ford Motor Company has been a leader in the automotive industry for decades and their dedication to maintain that ideology for years to come. After carefully examining the existing supply chain, I have realized that the main issue company have are, large base of suppliers, suppliers do not have proper IT network to support the requirements and there is not enough communication between Ford and our dealers in obtaining the accurate forecast. Meanwhile I am also aware of the very complex nature of auto industry. As a director of Supply Chain systems, I have decided to implement the portion of new supply chain strategy of Virtual Integration like Dell. Even though there are several key differences like, nature of business, market, and supplier between our company and Dell I still strongly suggest that we should implement the Virtual Integration strategy into Ford’s Virtual Integration. We will not adapt the whole virtual integration as is but the modified version of Dell’s virtual integration currently used by Dell should be apply to Ford’s supplier base, distribution system dealership and divisions. We will strongly need to monitor the process at each step. Implementing this strategy will help us stay competitive and maintain profitable.

Through this model we will not only engage with new technology but also the ideas from new IT companies which will enable us to accurately forecast the demand and at the same time will help us our end users to place orders online and will be able to modify the orders as well which will draw whole new generation of people to us. Engaging our company with new technology will also boost our sales by providing better customer service through our dealers and will enable better communication between suppliers, manufacturers, dealers and in supply chain in general.

If we are going to follow this new approach then we have to implement it simultaneously along with existing one that way we will be able to cover both market segments.

Applying this new approach means, we have to set up a whole new department which handles the implementing process and at the same time, educate our suppliers, enhance better communication with them and equip them as well with newer system for better flow of communication.

To measure the performance of this strategy, we should conduct periodical review and evaluation meetings. Recommendations for improvements should be noted in order to be noted.

The improvement of customer service and shareholder’s value will be the motto of this project.

We will discuss the details of this report in detail on 16th March 2017 (i.e. Thursday)