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Essays on supply chain management
Essays on supply chain management
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Introduction With the implementation of Ford’s restructuring plan, Ford 2000, the company has set forth goals to compete with the expansion of foreign-based auto manufacturers globally. The goal of Ford 2000 is to continue to improve quality and reduce cycle times by finding ways to improve processes involving all stakeholders within the supply chain and the company itself. The key to achieving this goal lies in the ability to take advantage of the Ford Company’s size and global presence to invest in information technology. This can be accomplished by using its intelligence resources to renegotiate the way it does business with suppliers, including partial integration of the “virtual integration model”, such as Dell Corporation uses. However, this report is also based on the recognition that customization of the model is needed to make it an effective strategy for Ford. Summary of Facts The Customer: Ford Investment Enterprise Company (FIECo) continues its goal to make improvements through dealerships by providing face-to-face interaction with customers while creating and maintaining retail processes and distribution channels to streamline company competitors and refocus dealership goals of providing excellent customer service. Ford’s website enjoys more than 1 million visits on a daily basis. Ford has the opportunity to both reach out to the customer and provide an experience customized to the preferences of that customer. Ford needs to be able to provide a high level of quality treatment both at the dealership and with on strong online web-presence that provides customization and pricing features for potential buyers to ensure high-quality customer satisfaction throughout the production process. The Compan... ... middle of paper ... ...D. (2008). Corporate Information Strategy and Management: Text and Cases. New York, N.Y. McGraw-Hill. Caps Research (May 27, 2009). Supply Chain Integration: Challenges and Good Practices. Supplychainbrain.com. Retrieved February 24, 2014 from http://www.supplychainbrain.com/content/general-scm/business-strategy-alignment/single-article-page/article/supply-chain-integration-challenges-and-good-practices/. Hitachi Consulting Corporation (2006). Supply Chain Technology Adoption: Address the Key Issues and Achieve the Benefit. HitachiConsulting.com. Retrieved February 4, 2014 from http://www.hitachiconsulting.com/files/pdfRepository/WP_SCMTechAdoptionStrategy.pdf. G. Marmulak (March 31, 2011). Supply Chain Comment: Balancing Push and Pull Strategies. Scdigest.com. Retrieved February 4, 2014 from http://www.scdigest.com/assets/Experts/Guest_11-03-31-1.php.
Supply chain management is connected with the flow of products and information between supply chain members and organizations. New development in technologies enables organization to get correct information easily in their premises. Technologies used are helpful in coordinating the activities which manage the supply chain. By this the cost of information is decreased because now we have increasing rate of technologies. In an integrated supply chain where product or raw material and information flow in a bi-directional we as managers needs to understand that information technology is more than just computers.
Ford uses a global area division organization design, setting up subsidiary companies for the different countries/regions that it is operating in....
Until recently, the Ford Motor Company has been one of the most dynastic of American enterprises, a factor which has both benefited the company and has brought it to the brink of disaster. Today Ford is the second largest manufacturer of automobiles and trucks in the world, and it’s operations are well diversified, both operationally and geographically. The company operates the worlds second largest finance company in the world, and is a major producer of tractors, glass and steel. It is most prominent in the US, but also has plants in Canada, Britain and Germany, and facilities in over 100 countries.
Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values).
In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.
The F&I office is an indispensable part of the automobile dealerships. It usually brings in a large proportion of the dealerships profits and in several cases nearly all of the dealership profits. Ironically, the interest rate float and credit insurance no longer provide the majority of the revenue earned by the F&I office at automotive dealerships. Since the late 1970s, a majority of F&I revenues have come from products such as VSC, GAP, Prepaid Maintenance, Appearance Protection, etc. Although a vast majority of the F&I products are still sold at automotive dealerships, other sales channels such as credit unions, direct marketing (call centers plus mail solici...
Ford- focused differentiation, medium pricing, breadth of product line is high. A strength is their pick-up truck market share, a weakness is perceived reliability and styling on some of the lines.
Ford Motor Company Marketing Strategy Ford Motor Company is one of the world’s largest producers of cars and trucks and one of the largest providers of automotive financial services marketing vehicles under the eight brands shown below. The Company is a publicly traded company listed on the New York Stock Exchange. During 2002, the company made 6.7 million vehicles and employed 328,000 people worldwide. Business partners include 25,000 dealers and more than 10,000 suppliers. Ford Motor Company offers a wealth of variety to the automotive consumer.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
Ford Motor Company Introduction This paper will address an analysis of the key success factors in strategic planning for the Ford Motor Company, including planning, product offerings, marketing and sales. The paper will also include financial characteristics and a competitive analysis of the Ford Motor Company. Ford Motor Company The Ford Motor Company inspired a manufacturing revolution with its mass production assembly lines in the early 20th century. Ford and Lincoln are one of the world's most well known automotive brands, most known for the Ford Mustang, and F-Series pickup trucks.
Ford is enjoying an increase in customer satisfaction, sees huge revenue opportunities for developing and retaining loyal product advocates, and has taken both complexity and cost out of the supply chain.
[8] Supply chain lessons for the new millenium: a case of Micromax informatics Integral Review –by Salma Ahmed, A Journal of Management-ISSN: 2278-6120, p-ISSN: 0974-8032, Volume 5, No. 2, Dec.-2012, pp 53-61) .
The Ford family still controls the company through multiple voting shares, even though it owns a much lower proportion of the equity. Ford’s business strategy is the integrated cost leadership/ differentiation strategy; this involves engaging in primary and support activities that allow the company to simultaneously pursue low cost and differentiation. This strategy is flexible and enables Ford to use technology to control the production of a variety of products in moderate, flexible qualities and with a minimum manual interaction, whose goal is to eliminate cost verse product variety. Cost leadership is a strong strategy, but it can be undermined by the frequent changes in technology, the imitation of cost advantage and the loss of focus on consumers. Ford’s differentiation strategy focuses on developing a unique product that consumers are willing to pay for, and the combination of these two strategies enables Ford to stay on its core competencies.