Ford motor company

GLOBAL SUPPLY CHAIN MANAGEMENT

Case Nº2: Ford Motor Company

Teacher: Fernando Casafranca

Student: Giannina Andrea Villanueva Puccio

2011

Ford Motor Company
Nowadays, one of the most important companies in the automotive industry, Ford Motor Company, uses the global supply chain for giving value and quality to the customer. They have realized how important is, for business, to makemoney when you solve customer service and when you understand the customer. We already know that supply chain is a way to look at the whole chain in order to delivering value for the last customer. In this case, we are going to analyze all the applications in FordMotor Company; in other words, how they use the global supply chain in their enterprise.
Ford Motor Company is an Americanmultinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. It is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-ranked overall American-based company in the 2010Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide. Five of Ford's vehicles ranked at the top of their categories and fourteen vehicles ranked in the top three.The company controls its brands Ford and Lincoln and has subsidiaries in 20 countries over theworld.They want to improve their upstream and downstream because each of them multiplies the value for the final customer.
In the environmental area, this company has increased its participation in activities such as “The path to green production”, “Strength in renewable recyclable materials”, “Greener miles”, “Eco-driving: ten easy tips for saving fuel”, etc. This is because Ford Motor Companyhasearth aware. They have realized that being fuel-efficient is more profitable for them because they are giving an extra value to their products in order to satisfy the increasing demand of eco-friendly products.
They also have realized that is more profitable to sell more products to their common customers that are why it is so important the innovation in their products (environment, quality,technology, safety and design). In addition, they use the outsourcing in points that are not critical for them so, in that way, the enterprise deals with their suppliers and distributors. They manage three concepts: think horizontally, reduce transaction cost and align their interests to the ones for their suppliers.
One of the GSC issues that Ford uses is the IT technology. For example, forobtain information from their suppliers and customers they use the Database, because of that they can be synchronized with their suppliers and know about the satisfaction of the customer with the product or service provided.
Actually, Ford Motor Company use the basic strategy of product differentiation because, as we can see, they use the innovation in their products as their principle tool for beingdifferent by taking care about the environment in an effective way (no matter how much effort they have to put on it).
Their mission is to create value and make a difference, to make our world a better place to live in.
Their vision is improving constantly our products and services in order to satisfy the customer’s needs because this allows us to achieve our goals as a company and obtain morerevenues to our shareholders who are the owners of our enterprise.
Their values are: our people are the source or our strength. They provide our corporate intelligence and determine our reputation and vitality. The involvement and team-working are the scent of our human values. Our products are the final result of our efforts, and they must be better for serving our customers over the world. As...