FORD EXISTING

PRACTICES
MAINTAINING SUPPLIER
RELATIONSHIPS
Tier 1 Suppliers would manage relationship with tier 2
suppliers to create long-standing relationships
Assisted suppliers with JIT, TQM and SPCs and in return
asked for price reductions in the next year
Suppliers were not able to invest in technologies and
educating them about the problem was difficult
Suppliers were primarily based on cost but overall supply
chain costs were not considered
ORDER TO DELIVERY

Reduce customer order delivery time to under 15 days from

60 days
Regional mixing centers that optimized the transportation
schedules
A robust order amendment system for minor
customizations like color and style
Forecasting of customer demand from dealers

FORD PRODUCTION SYSTEM

Focus on more level and synchronized production
through internal and external expertise
Synchronous material flow which ensured continuous
flow of materials and products based on efficient
vehicle scheduling
Inline Vehicle Sequencing that used vehicle in-process
storage devices to assure vehicles were ordered in
sequence
With this they could dramatically reduce the buffer
costs and suppliers can tell when the exact thing is
needed
FORD RETAIL NETWORK

Bought regional suppliers to save them from intra

competition
Consistent exterior look but brand oriented interiors
Service outlets closer to customer population centers
Would effect not only the automobile business but also
body shop operations and vehicular systems