Fave Ford Case Study Analysis

External logistic suppliers atomic number 18 used to manage inbound bring chain. Customers are encouraged to use computers to balance render and contend. Both companies are focused on st appreciategic partnership with Its suppliers. There might be several(prenominal) escalates between Dell and track there are some difference In the operation of the companies. B) Dell point its demand with compendious term forecast and any change in this instant divided within the accompany and its suppliers. interbreeding relies on long term presage. C) Ford furnish chain is more complex and then dell.Following are the alternatives and pickings ford can apply Alternative 1 Design a mixed bag of online and transferline operations and form procedures to en open customization and marking by customers over the profits but maintain physical corpusships as well. Advantages a) Customization to customers, start a supply chain vertical consolidation business pretence. B) Open new food market segment and attract clients who like online shopping. C) Reduction in overhead and inventory carrying costs. D) Direct control on customer service experience.Disadvantages a) Costly, time overwhelming that requires internal and external changes which are not easy to handle and merge with other operations. B) Independent dealers will complain due to internal competition. ) Suppliers unfitness to keep up to speed with Fords modern IT technology. Alternative 2 gestate a virtu wholey integrated supply chain based on Dells poser. Ford and all its suppliers would share knowledge between their systems and the Internet to arrange the flow of materials and production. All customer orders would be taken Page 2 either via Fords web site or by phone and then build.A pull system would be utilize completely. A) Customization to clients, start of vertical integration in the supply chain. B) Customers needs are met faster at high profits due the elimination of resellers ark-ups. C) Directly control customer service. D) nominal inventory carrying costs and higher order lead time. E) The ability to forecast demand is significantly better. F) Improved relationships with both customers and suppliers. Disadvantages a) Fords traditional processes and production methods would confound to be changed to take advantage of this new form of supply-chain management.Since it is a real costly and time consuming activity, the difference in the two industries dos it a risky option. C) Change management h as to take off etc w hi chi I s costs y and emotional y sensitive. Recommendation and Implementation Keeping the existing supply chain would continue to deliver the same dismal results and declining profits for the company. afterwards careful examination and review of the alternatives, we came to conclude that the long term entailment of the second alternative is the company going out of business, which eliminates option 2.This option seems illogical when we take into a ccount 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 only on their website or its gross sales will put it at a great 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 play a role in the distribution since the buying experience of a car from a dealer cannot 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 grad 2 and Tier 3 suppliers might not be able to update their IT infrastructure as often as Ford.Suppliers can have access to central design databas e while Ford controls the access and functionality as per Management Information System-Ford Case Study Analysis Page 3 the operational requirements. The whole coordinated system would ensure a soundless flow of materials and reduced bottlenecks and enhance the efficiency of the supply chain good-looking a competitive edge 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 firm which specializes in forecasting demand and can work with each dealer or electronic network of dealers.Monitoring and Control In order for the new system to function fitly as intended, Ford must perform the following functions 1 . bear down an IT specialist 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 immediately resolve issues as they arise. 2. Moon civil wrong customers only I nee orders b y revive ewe Eng all order I dead times. The it me f mom the customer order creation to delivery must not exceed a standard decimal point of 3.Initiate an online customer satisfaction program in which customers will evaluate and rate their customer experience with Ford. 4. After every 6-8 month, review the feat and make recommendations on improvements to the appropriate authority. 5. Annual executive meetings should be held to review the improvement of the business model. As well, review the shareholder value to check whether its increase or decreasing. Conclusion Dell has focused on entrepreneurial and flexile approach any chance can be embedded instantly across the organization.Ford is much bigger organization as compared to dell and has certain its operation capabilities over the period of time. Virtual integration should be implemented by ford more efficiently. It will help ford to be more efficient in term of production and quick to suffice for any change in the real tim e. By virtual integration ford can look forward for more profitability as their overhead and inventory carrying cost will decrease. Furthermore, the over all victor of this business model will depend mainly on the performance of their shareholder value. Page 4