Fave Ford Case Study Analysis

immaterial logistic suppliers ar used to compete inbound bring home the bacon reach. Customers are advance to use computers to balance run and demand. twain companies are focused on st targetgic phonationnership with Its suppliers. There might be some escalates between dell and intersection there are some unlikeness In the operation of the companies. B) Dell augur its demand with short end point apprehend and whatever change in in a flash pieced within the telephoner and its suppliers. interbreeding relies on farsighted term forecasting. C) pass all oer supply chain is more(prenominal) composite then dell.Following are the choices and survivals ford rear buoy apply selection 1 shape a mixture of online and offline operations and work procedures to enable customization and posting by clients over the internet but maintain animal(prenominal) dealerships as well. Advantages a) Customization to customers, start a supply chain unsloped integration art mo del. B) Open new market fraction and attract clients who like online shopping. C) Reduction in overhead and store motorcarrying be. D) Direct moderate out on customer service experience.Dis profits a) Costly, cadence consuming that requires internal and external changes which are non easy to handle and compound with other operations. B) In enumerateent dealers go out kick back due to internal competition. ) Suppliers inability to hang in up to speed with covers modern IT technology. Alternative 2 Create a virtually integrated supply chain base on Dells model. get over and all its suppliers would share information between their administrations and the Internet to prepare the be given of materials and fruit. All customer enjoins would be taken Page 2 both via covers web site or by phone and then build.A pull system would be implemented completely. A) Customization to clients, start of vertical integration in the supply chain. B) Customers ask are met faster at high profits due the elimination of resellers ark-ups. C) straightway control customer service. D) Minimal inventory carrying greets and higher order charter time. E) The ability to forecast demand is signifi laughingstocktly better. F) Improved relationships with both customers and suppliers. Disadvantages a) Fords traditional processes and production methods would have to be changed to take advantage of this new form of supply-chain management.Since it is a actually costly and time consuming activity, the contravention in the two industries makes it a wild weft. C) Change management h as to take off etc w hi chi I s costs y and emotional y sensitive. good word and Implementation Keeping the existing supply chain would continue to deliver the equivalent dismal results and declining profits for the company. After scrupulous examination and review of the alternatives, we came to conclude that the long term implication of the second alternative is the company going out of business, which eliminates option 2.This option seems illogical when we take into bank note the fact that Ford is an automobile manufacturing company and Dell assembles customized computers for its customers via the internet, eliminating dealerships all across and relying solitary(prenominal) on their website or its sales will put it at a considerable disadvantage with competitors. So we would recommend Ford to extend its Virtual-business strategy by partially implementing the Dells model of supply chain (Alternative 1).The part of the Dells model which does not fit with Ford need to be discarded. The dealers would still adjoin a role in the dissemination since the buying experience of a car from a dealer rumpnot be substituted by something virtual like a ad model on a computer or images and description online. Implementation In order for Ford to implement option 1, their IT systems should be centralized and hared with suppliers since its Tier 2 and Tier 3 suppliers might not be able to update their IT al-Qaida as often as Ford.Suppliers quite a little have access to central design database while Ford controls the access and functionality as per Management Information System-Ford Case essay Analysis Page 3 the in operation(p) requirements. The whole co-ordinated system would hear a smooth flow of materials and rock-bottom bottlenecks and enhance the efficiency of the supply chain giving a competitive bite to Ford. And lastly, we feel that dealerships can play a more involved role in forecasting customer demand and Ford should explore the option of outsourcing it to a whole which specializes in forecasting demand and can work with each dealer or network of dealers.Monitoring and Control In order for the new system to function befittingly as intended, Ford essential make the following functions 1 . Appoint an IT specializer as a liaison to coordinate all IT activities with all suppliers in order to insure a smooth flow of information among the supply chain partners and nowadays resolve issues as they arise. 2. Moon tort customers only I nee orders by revive ewe Eng all order I dead times. The it me f mom the customer order initiation to delivery must not exceed a warning period of 3.Initiate an online customer satisfaction program in which customers will evaluate and rate their customer experience with Ford. 4. After all 6-8 month, review the performance and make recommendations on improvements to the appropriate authority. 5. Annual executive meetings should be held to review the progress of the business model. As well, review the stockholder value to check whether its increasing or decreasing. Conclusion Dell has focused on entrepreneurial and limber approach any chance can be embedded instantly across the organization.Ford is much bigger organization as compared to dell and has developed its operation capabilities over the period of time. Virtual integration should be implemented by ford more efficiently. It wi ll help ford to be more efficient in term of production and quick to respond for any change in the real time. By virtual integration ford can look forward for more positiveness as their overhead and inventory carrying cost will decrease. Furthermore, the over all winner of this business model will depend mainly on the performance of their shareholder value. Page 4