Essay on Ford Motor Company/Dell Computer

1193 Words Dec 1st, 2014 5 Pages
Issue of Identification:
• Large data base of their suppliers, no too much partnership relationship with suppliers, no design involvement from suppliers
Ford has several thousand suppliers and operates in a more complex network. Well Dell has only about 50 suppliers. Meanwhile Ford needs several thousands of parts to produce a product while Dell needs less than hundred parts. Suppliers were picked primarily based on cost and little regard was given to overall supply chain cost.
There are already lots of good component manufacturers out there. Ford should focus the field where it could create value such as introducing the best product in the market and set up partnership via key suppliers instead of developing the components or managing
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Due to the use of independent dealership networks to sell their products, Ford lacked control on their product end users. Such lack of control had negatively impacted their ability to directly control their customer service experience and accurately forecast the demands. The inability in the forecasting the demands accurately will result overstock or stock out situation, which will create unnecessary stress on the whole supply chain and eventually will affect the cycle time, return on profit and Ford may loss the share of market.

Environmental and Root Cause Analysis:

With over 370,000 employees worldwide and revenue of more than $144 billions, the Ford Motor Company was the second largest industrial corporation in the world. Ford’s core business is the production and distribution of cars and trucks. In addition to that, Ford earned substantial revenues and profits from its financial subsidiaries that operated mainly in North America with limited operations in Europe and everywhere else. In its 1997 financial statement, Ford reported close to $ 7 billion in net income and a 5 year average revenue growth rate of %6. These positive financial statement figures were an indication of Ford’s strong market and financial positions. Its main competition till 1970’s was with General Motors and Chrysler. However the auto industry had grown much more competitive because of expansion of foreign-based auto

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