Ford Motor Company Supply Chain Strategy Essay -- Ford business Strate

crossing Motor alliance Supply Chain StrategyBackgroundIn 1913, Henry crossbreeding revolutionized product manufacturing by introducing the first assembly line to the automotive industry. get overs hallmark of achievement proved to be a happen upon competence for the motor comp some(prenominal) as the low cost of the mildew T attracted a broader, new range of prospective car-owners. However, after many another(prenominal) decades of success, clients have become harder to find. Due to relatively new threats to the industry, increasing numbers pool of cars and trucks are parked in dealer lots and showrooms creating an alarming apparent motion of stagnation and profit erosion. Foreign-based automakers, such as Toyota and Honda, have expanded operations onto domestic shores and, in turn, have wrestled market share from American automakers. As a direct result, unit over-capacity has steadily risen, while heightened competition and assorted product lines have led to increasing gu est demands. To answer these threats, traverse has made recent attempts to transform its dated vertical integrating return model into a maneuverable, efficient supply chain. Emphasizing methods such as Just-In-Time (JIT) inventory, Total Quality Management (TQM), and Synchronous Material Flow (SMF), Ford has derived a multi- pointed system of supply. The class system consists of numerous generic suppliers, tier two and below, who are managed by tier one vehicle sub-system suppliers. The tier one suppliers, by nature, are completely dependent upon Fords survival since the provided sub-system component is specific solely to Ford.dell and Virtual consolidationDespite the revamping effort, Ford remains plagued with prolonged Order-To-Delivery (OTD) time periods, congested inventories and error-ridden procurance processes. Upon investigation, these troublesome issues appear to be well addressed by the radically new direct military control model of the dell Computer Corporation. D ell differentiates itself through the utilization of realistic integration, an efficient and effective direct business model facilitated by electronic business providing Build-To-Order (BTO) products directly to customers. The process begins with the customer specifying exactly which features are to be included in the desired computer. Dell, then, buys components from several(prenominal) different suppliers via Internet-based JIT order. By using Dells process of JIT ordering , misal... ...ndustry by integrating a direct supply network. Fords goal of TQM could be easily met by implementing a variation of Dells already successful virtual integration business model. boost cooperation through incentives is key since compliance of supply chain partners is necessary to realize first-mover advantage.ConclusionIn todays competitive environment, it is important for any business to focus on the customer and to provide unique prize in order to achieve a sustainable competitive advantage. Without virtual integration, competitive advantage is lost. Successful implementation of virtual integration initiatives allows supplier companies, which are performing only certain processes, to work together as one entity. Therefore, operations become more efficient by step-down inventory, assuring quality, and reducing delivery time. More importantly, the organization maintains the ability to wave in a competitive marketplace by achieving increased customer satisfaction through unique and strategic core competences. Virtual integration will redefine corporations and , eventually, entire industries as supply chains learn into a new business model of cooperation and sharing.