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Ford Motor Company Supply Chain Strategy 21102 Finding the Best Fit The Ford Motor Company finds itself in a dynamic business environment where new technologies and practices offer the potential to alter 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 have been considering the Direct Model created by Dell Computer Corporation and finds that there is considerable appeal Dell has been able to speed up inventory velocity such that there is only eleven days 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 service staff are often thought by clients to be Dells own staff In order 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 allow us to gain some insight as to whether virtual integration could work at Ford Ford Motor CompanyDell Computer Corporation Similarities Cars are consumer itemsComputers are a consumer item Suppliers are often located close to manufacturing facilitiesFord maintains close locational links with suppliers Number of suppliers is smallFord is working to build relationships with a limited number of strategic suppliers Fords customers range from large corporations to government institutions to the consumerDells 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 A showroom is usually preferredComputers are generic in nature and do not need showrooms Safety and reliability are major concernsComputers
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