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Supply Chain Management.

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1.0 Introduction The manufacturing supply chain is increasingly complex while technology continues to hold the promise of greater efficiency and lower costs. Businesses today are examining their supply chain operations and looking for innovative solutions. As global competition increases and customer expectations rise, companies are competing on the agility of their supply chains. As the world's second largest automaker, Ford Motor Company had proved that how successful they implement the supply chain management in the industry. For the over two decades, the company had facing some problem in the increasing of production cost, increasing importance of e-commerce, increasing levels of outsourcing and competitive in the industry etc. Consequently, the company decided to change their strategy and integrated supply chain. However, in the process of implement the supply chain to the company, the management team of the company also faces some problem before they succeed. 2.0 Concept of Supply Chain Management The supply chain has been defined as 'the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer' (Christopher 1992). Information Flow (order, schedule, forecast etc.) Supplier Manufacturer Assembler Retailer Customer Materials Part Manufacturer Product Assembly Sales Use or Consumption Material Flow (supplies, production deliveries etc.) Figure 1: Generic configuration of a supply chain in manufacturing SCM looks across the entire supply chain (Figure 1), rather than just at the next entity or level, and aims to increase transparency and alignment of the supply chain's coordination and configuration, regardless of functional or corporate boundaries (Cooper and Ellram 1993). ...read more.


3.3 Organisational Structured At Ford, the purchasing department enjoys a prominent position. It is organizationally independently of product development. It works closely with every major product design. Price negotiation with suppliers is done by the purchasing department, alone It has gained power because of the sheer volume of purchases annually; a small reduction in price leads to large saving in the annual procurement spend. 4.0 Supply Chain Performance The supply chain performance is frequently analyzed and it is restructured to save costs by enhancing material flows, reducing inventory (JIT) and lowering manufacturing costs (FPS). The information flows smoothly across the supply chain streams, but is handicapped beyond the tier one suppliers. Ford reviewed the different components of its chain, identified bottlenecks and took measures to make them more efficient, leaner and responsive. For e.g. The Ford Production System, its important part "Synchronous Material Flow" (SMF) and the Ford Retail Network were implemented. Ford has a large supplier base. It procures from over 30000 suppliers and deals directly with less than a 1000. (http://global.umi.com/pqdweb?ReqType=301&UserId=IPAuto&Passwd=IPAuto&JSEnabled=1&TS=953862775. Up-to-date techniques like EDI, JIT and TQM are being used to communicate and coordinate between Ford and tier one suppliers. Ford's major suppliers have modern Information Technologies (IT) but do not have the capacity to invest in new technologies as rapidly as Ford. This technology modernity diminishes further in the lower tiers of the supplier base, mainly due to financial constraints. 4.1 Major Issues and Problems 1. Difficulties in establishing B2B linkages Lack of technology and technological sophistication that prevail in the supply chain, especially at lower tiers. ...read more.


The operation managers have to monitor the performance of the supplier and the stuff. Besides that, the operation manger also have to monitor the feedback of the customer for the evaluating the performance of their supply chain time by time. "We expect more from our suppliers these days," says Gioia. It isn't enough just to make good components. "We want to know what ideas and technology they have to offer." These trends involve a great deal of communication and the need for open, effective collaboration between customer, supplier, manufacturer, and everyone in between. 6.0 Conclusion In today's auto world to remain competitive, Ford will have to remain a low-cost producer of high-quality vehicles. With the new supply chain the Ford site will let the automaker and all its suppliers to share more information and do it more quickly for design requirements, demand forecasts and production schedules. Furthermore, it will help the components of the supply chain to work closely together, especially when developing new products. Purchasing should be strategically geared toward further improvement of the relationship with suppliers. Ford will be able to peel out to an early lead in the race to shorten delivery times, enhance or even completely replace the car-buying experience and stay involved with the consumer throughout the life of the car. Content 1.0 Introduction-------------------------------------------------------------------------1 2.0 Concept of Supply Chain Management--------------------------------------- 1 2.1 Methodology of Supply Chain Management----------------------------------2 3.0 Case Study of Ford Motor Company-------------------------------------------2 3.1 Current Situation Analysis Physical of Flow Goods-------------------------3 3.2 Information Flows------------------------------------------------------------------3 3.3 Organisation Structured----------------------------------------------------------4 4.0 Supply Chain Performance-------------------------------------------------------4 4.1 Major Issue and Problems--------------------------------------------------------4 4.2 Technique of Measurement and Coordination-------------------------------5 4.3 Resource------------------------------------------------------------------------------5 4.4 Cost------------------------------------------------------------------------------------6 5.0 Contribution of SPC to the Success to Ford-----------------------------------6 5.1 Practical Implication of SPC to Operation Manager------------------------6 6. ...read more.

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