Dell/Ford Essay

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Part 1 – Executive Summary I am Teri Takai, the Director of supply Chain Systems at Ford Motor Company, my decision for Ford is to implement new technology modeled on the Dell’s virtual integration system for supply chains. This system will need quite a bit of thought to make it fit the automotive industry. We have thousands of suppliers globally and we will need to have it work at all ends of the company which could be quite a challenge. Also the number of products that we produce as well as the many permutations that can be set up by our end customers will make it all the more difficult to manage. Issue Identification Part 2: Immediate Issue The immediate issue facing the Ford Motor Company is its need to radically redesign its supply chain and other facets of the company or risk being left behind. The question is if they can use emerging information technologies like the internet and ideas from high tech industries like Dell to change how they interact with their suppliers and customers. Part 3: Systemic Issues CEO Jac Nasser’s recent companywide emphasis on shareholder value and customer responsiveness was something that was needed to push the company forward were things that Dell had delivered but would the same strategy work for Ford. Senior executives were of two minds on the matter of going to a virtual supply chain model. One group felt that the auto industry was ready for a more high tech way of working their supply chain. While the other group was more cautious, saying that Ford had many more layers and companies that had to be dealt with as well as the fact that Ford’s purchasing was more prominent and independent than Dell’s which they were looking to model their plan off of. The automotive industry has always been a “Push” industry. Unlike buying a computer it is not something most would do sight

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