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Ford Motors' Supply Chain Framework
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GROUP MEMBERS
AMRIK SINGH
SUKHJINDER S PUREWAL
MANPREET KAUR
PRIYANKA GUJRAL
DHRUV PATEL
HIREN AHIR
BACKGROUND OF THE COMPANY
Founded in 1903 by Henry Ford
In 2010 Ford was ranked 2nd best USA based automobile manufacturer
Also it was listed at the eighth position in 2010 among “fortune 500”
It produced 5.532 billion automobiles in 2008 and generated an
annual revenue of 118.3 billion in 2009
Supply Chain
Management Model of
Ford
To Build Strong
Relationships
Shared Commitment & Supplier Capabilities Collaboratin
g throughout Automotive
Industry
Inventory Management is of Two Types
just-in-time inventory
the economic-order
quantity decision model
For Example- Ford
Dealership (UCS Tracking
System)
Demand Forecasting
Previously- Web visitor
activities
At Present- Based on
historical data
Procurement
OLD-
Multiple suppliers
Common spot purchases
Minimal information exchange
Paper and labor intensive
NEW-
Selected suppliers
Elimination of spot purchases
High level of information exchange
Electronic process
Improvement in quality
Cost savings
Staff benefits
Customer Benefits
Production Planning
Visualization & Techniques
Inventory charges
Overtime wages
Workplace planning system
Types of Warehouses
Public Warehouse
Private Warehouse
Bonded Warehouse
Modes of Transportation
Roadways
Railways
Airways
Waterways
Ford Protection Plans & Warranties
Ford offers & Financial Services
Ford Extended Service Plan
Customer Support Centre
Performance Measurement
Elimination of potential risk to
ensure continuous supply chain
management
Utilization of SIX SIGMA with
Penske to enhance supply chain
management
Primary objective is to maximize
carrier service and cost-cutting
Technology & change in supply chain system of ford in past 10 years.
Current scenario
CAD System
Globalization