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FORD Supply Chain Strategy
FORD Supply Chain Strategy
Advantages:
o To reduce working capital and inventory obsolescence.
o Using information to blur the traditional boundaries between
suppliers, manufacturer, dealers and buyers.
o Strong conceptual blueprint for what Ford should attempt is
available.
Limitations:
o Considerable Differences in auto business and computer
manufacturing.
o Complex supplier network with many layers and numbers.
Issues:
o Dells success depended on Information replacing inventory.
Whereas in FORD, drop in IT Systems capability between Tier-1 and
Tier-2 suppliers leads to information asymmetry between the
suppliers value-web.
o Purchasing department independent of Organisation whereas in Dell
all departments work closely together.
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