Fave Ford Case Study Analysis

External logistic suppliers are used to manage inbound tot up stove. Customers are advance to use com formaters to balance supply and demand. Both companies are focused on strategic partnership with Its suppliers. There might be some escalates among Dell and crossroad there are some difference In the operation of the companies. B) Dell gauge its demand with short term forecast and some(prenominal) form in instantly shared within the union and its suppliers. crossing relies on long term forecasting. C) pass everywhere supply train is more complex then dell.Following are the alternates and options ford chiffonier kick in Alternative 1 Design a mixture of online and offline operations and signifier procedures to enable customization and reading by customers over the internet but get physical dealerships as well. Advantages a) Customization to customers, start a supply chain unsloped integration business posture. B) Open new market segment and pull clients who lik e online shopping. C) Reduction in overhead and scrutinize carrying be. D) Direct moderate on customer service set about.Disadvantages a) Costly, era consuming that requires internal and international changes which are not easy to handle and integrate with other operations. B) fissiparous dealers will complain c allable to internal competition. ) Suppliers inability to keep up to speed with Fords modern IT technology. Alternative 2 Create a some integrated supply chain based on Dells model. Ford and each(prenominal) its suppliers would share information between their outlines and the Internet to coordinate the flow of materials and production. exclusively customer orders would be tax returnn page 2 either via Fords vane 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 needs are met faster at higher profits due the elimination of resellers ark-ups. C) Directly control customer service. D) Minimal inventory carrying costs and higher order lead time. E) The ability to forecast demand is signifi coffin nailtly better. F) Improved relationships with both customers and suppliers. Disadvantages a) Fords traditional processes and production methods would have to be changed to bump off advantage of this new form of supply-chain management.Since it is a Very costly and time consuming activity, the difference in the two industries makes it a risky option. C) swop 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 go by to deliver the same dismal results and declining profits for the company. After careful tryout 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 ac count 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 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 purchasing 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 cardinalized and hared with suppliers since its floor 2 and Tier 3 suppliers might not be able to update their IT al-Qaeda as often as Ford.Suppliers can have access to central design database whi le Ford controls the access and functionality as per Management selective information System-Ford Case Study Analysis Page 3 the operational requirements. The square coordinated system would ensure a smooth flow of materials and minify bottlenecks and enhance the efficiency of the supply chain giving a hawkish edge to Ford. And lastly, we feel that dealerships can play a more confused role in forecasting customer demand and Ford should look for the option of outsourcing it to a firm 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 beguilely as intended, Ford moldiness perform the following functions 1 . Appoint 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 tort customers only I nee orders by revive ewe Eng all order I baseless times. The it me f mom the customer order initiation to delivery must not exceed a standard period of 3.Initiate an online customer pleasure program in which customers will evaluate and rate their customer experience with Ford. 4. After every 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 shareholder value to check whether its increasing or decreasing. resultant Dell has focused on entrepreneurial and flexible approach any chance can be embedded instantly across the organization.Ford is such(prenominal) 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 cost-efficiently. It will help ford to be more efficient in term of production and quick to respond for any change in the real t ime. By virtual integration ford can look forward for more profitability as their overhead and inventory carrying cost will decrease. Furthermore, the over all success of this business model will depend mainly on the performance of their shareholder value. Page 4