FORD MOTOR UNIT COMPANY: SUPLY CHAIN APPROACH
Teri Takai, Director of Supply Cycle Systems for Ford Motor unit Company 2. TIME CONTEXT
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?
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)
вЂў Second largest professional corporation in the world вЂў Earnings of more than 144 billion
вЂў About 370, 000 personnel
вЂў Functions spanned 2 hundred countries
вЂў Strong romantic relationship with suppliers
Extended customer to delivery time (45-65 days)
Industry relying on technology is in the progress stage (Late 1990s) Risks
вЂў The car industry is facing increasing overcapacity вЂў Benefit in the industry was fast becoming global вЂў 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
вЂў Product development consolidated in five Automobile Centers (VCs) вЂ“ every single responsible for the introduction of vehicles within a particular consumer market part вЂў Producing processes and products internationally common вЂ“ Eliminate redundancies
вЂ“ Recognize economy of scales
VII. TWO OPINIONS BY THE TEAM
Group favoring Virtual Incorporation
вЂў This kind of group asserted that the new technology made it inevitable that totally new business models would prevail вЂў Honda needed to significantly redesign their supply sequence and...