Ford motor company: supply chain strategy

History

Since the cut through Motor Companys incorporation by Henry interbreeding in 1903, its strategic focus has remained on travel founding and manufacturing. Up until 1970, competition was from the two other manufacturers making up the Big Three Automakers; General Motors and Chrysler. However, starting in the 1970s, inappropriate competition, mostly from Toyota and Honda, eventually lead to overcapacity within the industry. As more(prenominal) and more developing and industrial nations encouraged development into the automobile industry, overcapacity in the automobile markets reached an estimated 20 billion vehicles.

In 1995, in an attempt to reduce cost and increase efficiency, get across developed a restructuring plan called Ford 2000 that was to focus on globalizing corporate organizations and pickings advantage of the economies of scale in purchasing and manufacturing by consolidating the labor union America, European, and international automobile operations. Ford 2000 also called for a sweep through reengineering of several key company processes including Order to Delivery (OTD) and Ford Production System (FPS). One of the primary strategic goals of Ford 2000 was to decrease OTD from 60+ days to less than 15.

To help get the better of information constraints in Fords new global approach, they launched a company-wide Intranet in mid-1996.



In addition, Ford further expanded upon that system to accommodate business-to-business (B2B) capacity by January 1997 which also comprised the Automotive Network supplant (ANX). Fords public net site went live in 1995. Internet usage exploded, and by mid-1997, Fords website was getting more than 1 million hits per day. During this revolutionary time, Ford was honored as the most meliorate automaker in the 1997 JD Power Initial Quality cogitation; listed as number 4 overall behind Honda, Toyota, and Nissan.

With an warmness on the global market, each automobile manufacturer was aspect to expand their global reach. By mid-1998, Chrysler merged with Daimler-Benz. Several months later,

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