Ford Case

 Ford Circumstance Essay

FORD MOTOR UNIT COMPANY: SUPLY CHAIN APPROACH

I. STANDPOINT

Teri Takai, Director of Supply Cycle Systems for Ford Motor unit Company 2. TIME CONTEXT

Late 1990s

III. ASSERTION OF THE DIFFICULTY

How should the company use emerging information technologies (i. e. Internet technologies) and ideas from new great industries to change the way this interacted with suppliers?

IV. OBJECTIVE

In order to make the supply chain work smoothly by reducing bottlenecking, improve inventory administration and improving overall performance.

Versus. ENVIRONMENTAL SCAN (AREAS OF CONSIDERATION)

Strong points

• Second largest professional corporation in the world • Earnings of more than 144 billion

• About 370, 000 personnel

• Functions spanned 2 hundred countries

• Strong romantic relationship with suppliers

Weaknesses

Extended customer to delivery time (45-65 days)

Opportunities

Industry relying on technology is in the progress stage (Late 1990s) Risks

• The car industry is facing increasing overcapacity • Benefit in the industry was fast becoming global • nonparallel IT maturity especially with initial tier suppliers who were not able to invest in new technologies on the rate Honda itself may VI. ONGOING IMPROVEMENTS

Honda 2000

• Product development consolidated in five Automobile Centers (VCs) – every single responsible for the introduction of vehicles within a particular consumer market part • Producing processes and products internationally common – Eliminate redundancies

– Recognize economy of scales

VII. TWO OPINIONS BY THE TEAM

Group favoring Virtual Incorporation

• This kind of group asserted that the new technology made it inevitable that totally new business models would prevail • Honda needed to significantly redesign their supply sequence and...

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