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During Ford’s inception in 1903 they had to manufacture all components required for assembling a motor vehicle, which meant investing in massive infrastructure development and was therefore less focused on distribution efficiency and ultimate customer satisfaction. As the Ford Company’s legacy grew other supplier entered the market which assisted and pioneered Ford to become more efficient and effective in meeting growing demand. Ford’s current management style evolved, but lacked innovative perspective to harness new technologies, which have led to various obstacles within their current supply chain, i.e. excess suppliers and complex networks, cost-driven selection criteria by the purchasing department, etc.
Real-time communication within and outside company boundaries, i.e. virtual integration is key to ensure future sustainability for the Ford Company; globally. Ford’s executive management needs to evolve from project management (to streamline internal processes) into programme and portfolio management, focusing on value-add throughout the entire business model. Not neglecting the intended management functions of monitoring and control throughout the process.
Recommendations are (but not limited to) having fewer partners, implementing service-level agreements which focuses on technology and quality leadership within the automobile industry. The longer the supply chain and complex the networks the longer the lead times, costs, risks inventory and overall increased variability. Information sharing with suppliers to reduce time to market, therefore value-add between buyer and seller. And finally real-time communication with suppliers on needs, market trends and sophisticated data exchange will assist in streamlining Ford’s operations and ensure future global advantage and compatibility within the automobile industry.
Question 1: Evaluation process, problems and causes?
To realize the opportunities for improvement of the...