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    Ford

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    Abhimanyu Bhardwaj
    Ford has a more complex product with over 30,000 parts compared to Dell's 300 parts. Ford has many suppliers and manufacturing facilities worldwide while Dell has fewer suppliers and facilities. Some key challenges for Ford in implementing Dell's direct business model are its complex product, large supplier network, and differences in product delivery compared to Dell's smaller electronic products. Ford would need to significantly improve IT integration across its supply chain and rethink its relationships with suppliers, dealers, and customers to fully realize the benefits of a more virtual integration and direct sales model.

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    Ford

    Uploaded by

    Abhimanyu Bhardwaj
    255 views11 pages
    Ford has a more complex product with over 30,000 parts compared to Dell's 300 parts. Ford has many suppliers and manufacturing facilities worldwide while Dell has fewer suppliers and facilities. Some key challenges for Ford in implementing Dell's direct business model are its complex product, large supplier network, and differences in product delivery compared to Dell's smaller electronic products. Ford would need to significantly improve IT integration across its supply chain and rethink its relationships with suppliers, dealers, and customers to fully realize the benefits of a more virtual integration and direct sales model.

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    Ford has a more complex product with over 30,000 parts compared to Dell's 300 parts. Ford has many suppliers and manufacturing facilities worldwide while Dell has fewer suppliers and facilities. Some key challenges for Ford in implementing Dell's direct business model are its complex product, large supplier network, and differences in product delivery compared to Dell's smaller electronic products. Ford would need to significantly improve IT integration across its supply chain and rethink its relationships with suppliers, dealers, and customers to fully realize the benefits of a more virtual integration and direct sales model.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    255 views11 pages

    Ford

    Uploaded by

    Abhimanyu Bhardwaj
    Ford has a more complex product with over 30,000 parts compared to Dell's 300 parts. Ford has many suppliers and manufacturing facilities worldwide while Dell has fewer suppliers and facilities. Some key challenges for Ford in implementing Dell's direct business model are its complex product, large supplier network, and differences in product delivery compared to Dell's smaller electronic products. Ford would need to significantly improve IT integration across its supply chain and rethink its relationships with suppliers, dealers, and customers to fully realize the benefits of a more virtual integration and direct sales model.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Ford v/s Dell

    Dell
    Ford
    Product complexity

    High: 30,000+ parts Low: 300+

    Product cost and life High / long term


    span
    No of suppliers /
    sub-suppliers

    Low / shorter
    term

    Large (1000+) Multi Small (50)


    tiers
    single tier

    Distributors/ Dealers many

    None - direct
    to customers

    Dells direct business model and virtual


    integration

    What are the roadblocks that make


    the direct model difficult to implement
    at Ford
    Compare Ford with Dell
    Ford 180 manufacturing facilities all over the world
    Dell Only 3!
    Over 4,000 suppliers offer more than 2,500 kinds of
    components for Ford's product assembly.
    The number of Dell's suppliers is much less than
    Ford's.
    Strategy

    How VI could work in Ford


    Dells VI

    Ford
    Possibility

    Organization Simplifying

    Inventory Management

    Customer Service and


    Support

    Suppliers management

    Recommendation 1:
    Inventory Management
    Shift the ownership of raw materials to
    suppliers:
    By using EDI with suppliers and the
    existing advantage of nearby ship
    points.

    Recommendation 2:
    Customer Service and
    Support
    Allow product customization both online and
    offline
    Collect customer data from dealers to
    Segment customers
    Accurately forecast demand by individually work
    with local dealers

    Implement a support network where parts can be


    exchanged and delivered in a short time.

    Recommendation 3:
    Supplier Management
    Invest in IT for supplier, in order to bring the same
    level of IT knowledge among suppliers and Ford
    Sharing design with supplier in order to speed
    time to market
    Involve supplier in R&D

    Ford
    What practical challenges must Ford address as it
    tries to establish Internet linkages with its supply
    base
    Difficulties in establishing B2B linkages
    Lack of technology and technological sophistication
    that prevail in the supply chain, especially at lower
    tiers.

    Ford Motor Company: Supply Chain


    Strategy
    How should Ford use Internet technologies to interact with
    suppliers
    To address this problem Ford must think about its
    relationships not only with suppliers but also with dealers
    and customers.
    As supply chain systems staff members study the Dell
    model in particular, they come to appreciate that virtual
    integration must include design not only of the supply
    chain but also of fulfillment, forecasting, purchasing, and a
    variety of other functions that had long been considered
    separately within the Ford hierarchy.
    The question is in fact explosive in its implications, because
    it inevitably leads to fundamental questions about the way
    Ford has historically operated internally and how it has
    interacted with important partner constituencies (including
    dealers)

    One difficulty for Ford in


    implementation
    Ford's core product is the automobile.
    Automobile manufacturing is a very complicated process and is
    assembled by using many components.
    This makes it difficult for customers to choose a car in direct sales or
    online.

    Another difficulty for Ford


    Automobiles are bigger and heavier than other products.
    It will cost much more for the delivery of automobile.
    It's hard for the customers to return the automobile if they are not
    satisfied with the product.

    What could Ford do


    better?
    Understand the implications of "virtual integration"
    and direct model in practice.
    Realize compatibility and capability of IT throughout
    supply chain.
    What has Ford gotten right?
    Recognized the potential of the Internet early on.
    Cut Order- to- Delivery time from 60 days to less
    than 15.
    Prioritized focus on competition

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