Ford Motor Company Case Report EXECUTIVE SUMMARY As the Director of Supply Chain Systems, I decided to implement the new supply chain strategy of virtual integration and model its supply chain on that of companies like Dell. Although there are several key differences between the companies, Dell's direct business approach can be applied to all facets of Ford's business. Particular care will need to be taken to address the unique dependency of our “first tier” custom suppliers. A modification of the virtual integration system currently used by Dell could be applied to the Ford-dependent supplier base, while the management of lower-tier suppliers of general or generic components would be more effectively adapted to the standard procedures used by Dell. In 1913, Henry Ford revolutionized product manufacturing by introducing the first assembly line to the automobile industry. In the 1980s, Ford selected suppliers based on lowest costs and ignored overall supply chain costs. Dealing with so many suppliers led to higher overall costs and complexity that was difficult to control. In the 1990s, Ford significantly reduced the number of suppliers and moved toward longer-term relationships with a set of suppliers who would supply complete vehicle subsystems. Although the number of suppliers was fewer, our supply base was different and more complex than that used by Dell. After several decades of success, customers are increasingly difficult to find. Due to relatively new threats to the industry, an increasing number of cars and trucks are parked in dealership lots and showrooms, creating an alarming trend of stagnation and loss of profits. Foreign automakers such as Toyota...... middle of paper ...... the possibility of virtual integration initiatives allows suppliers, who only perform certain processes, to work together as a single entity . Operations therefore become more efficient by reducing inventory delivery times. Most importantly, the organization maintains its ability to thrive in a competitive market by achieving increased customer satisfaction through unique and strategic core competencies. My decision to proceed with virtual integration should help redefine Ford as a competitive and profitable company, which can perhaps become a leader in the automotive industry by implementing a system currently not used elsewhere in the industry automobile. Rather than remaining static, Ford must seek change and model its systems after successful companies such as Dell. I think we should continue the integration process here at Ford starting Monday..