Ford Motor Company: Supply Chain Strategy Analysis from HBS Case

track Motor Company: Supply Chain St appreciategy

2/11/02

Finding the scoop out Fit

The Ford Motor Company finds itself in a high-octane line of work environment where advanced technologies and practices offer the potential to deepen in a significant way the landscape in which it operates. Henry Ford was in his time an innovator in offering cars for the masses. He introduced to the car industry methods and systems innovative in their day. Ford needs once again to forge new paths to ensure future competitive advantage .

Executives at Ford let been considering the Direct Model created by Dell Computer Corporation and finds that in that respect is considerable appeal. Dell has been able to speed up blood form velocity such that there is only eleven age of inventory on hand. This has led to an inventory turnover rate of thirty times per annum . This achievement, termed by Michael Dell Virtual Integration has been achieved by blurring the line between supplier, Dell and client, to the extent that third party good staff atomic number 18 often thought, by clients, to be Dells own staff.

In narrate to see how congruent the Dell model is to Fords business we need to examine the similarities and differences between the two companies. This will furnish us to gain some insight as to whether practical(prenominal) integration could work at Ford.

Ford Motor CompanyDell Computer Corporation

Similarities

*Cars atomic number 18 consumer items.*Computers are a consumer item.

*Suppliers are often located jam to manufacturing facilities.*Ford maintains close locational links with suppliers.

*Number of suppliers is small.*Ford is on the job(p) to build relationships with a limited number of strategic suppliers.

*Fords customers regularise from large corporations, to government institutions, to the consumer.*Dells clients range from large corporations, to government institutions, to the consumer.

Differences

*Cars are personal in nature and many clients want to have close contact.

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