Ford motors company supply chain strategy case solution. Toyota motor corporation is a japan based company with its headquarter at toyota aichi. Inventory management is of two types justintime inventory the economicorder quantity decision model for example ford dealership ucs tracking system 5. In this area of operations management, the strategic decision focuses on maintaining adequate supply to general motors company. A project report on an analysis of global supply chain management on toyota supply chain management oakbrook business school, adalaj, gandhinagar mba sem. Support gms core values customers valuable and relevant supply chain solutions how does our end customer benefit from your productservice. Understanding the complexity of supply chain operations is an evolving and challenging part of business management in a global economy. Executive summary the ford motor company is a well established, international automotive design and production company that is shifting the company mission to have an emphasis on shareholder value and customer responsiveness. General motors operates hundreds of manufacturing facilities across the world and produces millions of vehicles annually.
Supply chain management ford motor company term paper. Supply chain strategy case study analysis, subjects covered information technology logistics suppliers supply chain management by robert d. The california transparency in supply chains act of 2010 requires certain manufacturers doing business in california to disclose information about their efforts to eradicate slavery and human trafficking from their supply chains. General motors1 supply chain and inventory management. Supply chain management new competitive realities in the automotive value chain. Gm is on a journey of significant change effective supply chain management otd will continue to be an. Supply chain management scm is a concept that is gaining in popularity and importance. Ford motor company supply chain strategy background in 19, henry ford revolutionized product manufacturing by introducing the first assembly line to the automotive industry. The new supply chain model scm supply chain resource. General motors corporation, the worlds largest fullline vehicle manufacturer and marketer, designs, builds, and sells cars trucks and automobiles parts globally. General motors will be giving away 1,000 vehicles through its hot button marketing program, the latest in a line of groundbreaking marketing initiatives aimed at reaching consumers more effectively. General motors reports its supply chain risks supply. May 09, 2016 the tsunami of 2011, which triggered the meltdown at the fukushima daiichi nuclear power plant, was a wakeup call for general motors gm. Automotive giant general motors has given details of the risks to its business from its supply chain in a report to potential investors as it plans to float on the us stock exchange the prospectus for the automotive giants initial public offering, following a government bailout in 2008, reveals a risk to the business in using a small number of suppliers.
Supplychain managers try to coordinate and integrate the diverse activities of supplychain members to synchronize these. The sustainability business case for general motors. As globally operating organisations, they are exposed to high risk scenarios ranging from controllable risks, such as raw material price fluctuation. Supply chain management of honda motor company limited. The prospectus for the automotive giants initial public offering, following a government bailout in 2008, reveals a risk to the business in using a small. Customers will continue to be increasingly more demanding product and business strategy competition will continue to intensify to win. Supply chain partnership program requires suppliers nietzsche genealogy of morality pdf to demonstrate their.
As a result, automobile manufacturers face potential financial risks from their supply chain operations in the form of energy price volatility and regulatory. Supply chain strategy case study solution, ford motor co. The lean management approach, developed by taiichi ohno 1998 at toyota motor. The ford motor companys supply chain management landon orchard 292 windermere court west, london, ontario, canada 5196617006 landon orchard is currently an undergraduate business management major at ashland university, ashland, ohio north central ohio apics chapter fulltime undergraduate student the ford motor companys supply chain. Ford motor company supply chain strategy case report executive summary. The only entity that puts money into a supply chain is the end customer. Hondas automobile product line accounts for approximately 90 percent of its sales, and includes wellknown u. Supply chain management can be defined as the management of flow of products and. Supply chain and inventory management location production inventory transportation distribution gms global. General motors embarks on several promotional strategies to reach to its customers and an example of such strategy is the one given in this source. Motors, ford, and daimlerchrysler are faced with severe cost pressures, they adhere more strongly to the selection model. It is the first automotive company that produces more than 10 million vehicles in a year. Western cape provincial government department of justice.
Supply chain management of honda motor company limited january 10th, 2011 its best market is in the united states, where the majority of its sales are generated. Analysis of global supply chain management of toyota 2. Supply cain management function of honda is working at its best by integrating all the departments and properly. The tsunami of 2011, which triggered the meltdown at the fukushima daiichi nuclear power plant, was a wakeup call for general motors gm. General motors works hard to create stronger relationships with its supply base and improve vehicle quality. The dynamics of supply chains in the automotive industry. Supply chain strategy case analysis, ford motor co. Our engineers worked closely with gm to establish a new warranty parts center in lake orion, michigan. Supply chain responsibility supply chains built on strong, transparent and trusted partnerships are critical to ensuring product quality, availability and affordability for our customers. Logistic management is that part of supply chain management which plans, implements and controls the efficient forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements bozarth and handfield, 2008, p. Basically the company is looking to determine the information technology strategy that will best serve for the interaction with suppliers with the existing engineering process at ford.
Gms detroithamtramck plantone of its most complex manufacturing assembly facilitiesemploys about 1,800 workers in its 4. Due to the fact that the supply chain is a complex system that must be managed holistically, we share the trends on each of these dimensions over the course of the last decade. Gm designs, manufactures, and markets passenger cars, trucks, and locomotives, as well as related parts and accessories. General motors reports its supply chain risks supply management. View notes general motors 1 from hist 349 at suny adirondack. Altogether there are 500,000 gm parts from 4,000 suppliers gm uses a.
Changes in fords supply chain management throughout fords years as a major car company their supply chain management has undergone a complete overhaul. Ford motors has been facing quite a few issues with its supply chain model, therefore, the company is looking to follow the dell corporation supply chain model. Gm learned that their business continuity plans at the plants were too tactical. Supply chain and isk anagemnt 2 the global supply chain and risk management survey is a study of the supply chain operations and risk management approaches of 209 companies with a global footprint. How general motors overcame quakes in supply chain in its. Ford motor co supply chain strategy case solution and. This thesis looks at how supply chains in the automotive industry operate from the perspective of the manufacturers. Qixiu carissa yu garret bauer 8814 scm 303 the supply chain of general motors introduction general motors corporation, the worlds largest fullline vehicle manufacturer and marketer, designs, builds, and sells cars trucks and automobiles parts globally. Jul 27, 2016 gm, as well as many other leading company, are showing that financial success requires strong supply chain risk management. Operation and supply chain management on tata motors. Effects of the japanese earthquake and tsunami congressional research service 1 introduction the march 2011 great tohoku earthquake and tsunami struck the northeast coast of japan. Enable vehicle assembly, propulsion systems, stamping and service parts to achieve daily production schedules and successfully implement new product programsincluding planning, processes and systems that support material flow from suppliertofactory and docktooperator.
Based in michigan in 1903 by henry ford and grew to reach. The processing of raw materials and the manufacturing of components for the automotive supply chain results in significant lifecycle energy consumption and greenhouse gas emissions. Gm also produces cars through its holden, opel, and vauxhall units. Gm produces buick, cadillac, chevrolet, gmc, pontiac, saab, and saturn. The objective is to maximize supply chain effectiveness and efficiency by solving operational barriers and bottlenecks. Supply chain strategy case study solution, ford supply chain strategy background there are several operations that are accounted for in fords current strategy that needs to be evaluated in order to. Manufacturing office amo to implement an energy management system enms. Ford motor company supply chain strategy case report essay cram. The subsequent are five elementary mechanisms of supply chain management. Supply chain management abbreviated as scm is the mixture of science and art that drives into refining the technique that organization discover the raw mechanisms it wants to sort a creation or facility and supply it to clienteles. The practice of supply chain management is guided by some basic underlying. The ford motor companys supply chain management landon orchard 292 windermere court west, london, ontario, canada 5196617006 landon orchard is currently an undergraduate business management major at ashland university, ashland, ohio north central ohio apics chapter fulltime undergraduate student the ford motor. May 31, 2016 supply chain risk management has become a hot topic in recent years.
By chris petersen general motors vice president of global purchasing and supply chain steve kiefer brought a unique perspective to the automakers supply chain when he joined the company about two years ago. This advanced process and analysis ups supply chain solutions sm case study general motors. In 1930s, ford motor corporation created vastly vertically integrated automobile manufacturing empire the industry had. Ford motors supply chain management linkedin slideshare. These natural disasters were exacerbated by additional disruptions from the collateral damage to a. These partnerships are vital to improving our business competitiveness and lowering business risks. Supply chain management solutions for the automotive. Apr 16, 2015 the problem of late payments in the u. Supply chain general motors 2018 sustainability report. Aug 20, 2010 automotive giant general motors has given details of the risks to its business from its supply chain in a report to potential investors as it plans to float on the us stock exchange. The study includes the industry structure, the top players in the industry, factors that drive the industry, and supply chain challenges for companies in the industry. Within our strategic risk management team, we utilize and offer a variety of decisionsupport tools, such as war gaming, game theory, scenario. After assessing the companys exposure to risk and opportunities, the team recommends that gm should implement an internal price on carbon and a sustainable supply chain strategy. General motors continues supplier relations damage control.
Their new strategy states that they feel they can make a positive impact in the markets in which ford does business by working with suppliers to identify systems that contribute to. General motors global purchasing and supply chain global. It was also a topic of discussion at qad s recent explore 2016 user conference. Ford motor company supply chain strategy case report essay. Effective supply chain management otd will continue to be an increasingly important differentiator. Fundamentals of supply chain management kenyatta university. The new supply chain model was described by jeff trimmer formerly of daimlerchrysler, in terms of three principles. The supply chain management steering committee is comprised of executives from automotive oems, parts suppliers and service providers that provide a broad overview of industry needs in materials management. Manage corporate build schedules and plant operating plans.
Overall weak supply chain channel due to less number of ds and warehouses marketing and sales tc. General motors made improvement in building trust, but supplies again cited toyota and honda as most supplierfriendly. In the first half of the 1900s ford motor company owned much of what it. Although achieving synchronization is important, attaining it within the supply chain is an arduous task. Ford motor company ford motor company supply chain. Supply chain organizers have to generate a receptive and springy system for getting faulty and extra yields back from their and clientelesbacking up patrons who have difficulties with transported yields. Feb 22, 2007 optimal productiondistribution planning in supply chain management using a hybrid simulationanalytic approach, young lee maha muzumdar, oracles logistics expert, predicts future trends in the february issue of supply chain digital.
Discuss supply chain management of general motors corporation within the elements of logistics forums, part of the publish upload project or download reference project category. Supply chain risk management has become a hot topic in recent years. In the face of increasing international competition, ford has recognized several facets of operations that can be better executed in order to attain the outlined. The only solution that is stable over the long term is where every element of the supply chain, from raw material to end. Supply chain carbon management strategy for ford motor. It is a multinational company which has more than 3.
Sold 26k suvs in 201112 across india and sells 12 per month in ranchi. The company also provides automotive financing services through general motors financial company, inc. Supply chain management of general motors corporation. Business process reengineering general motors corporation general motors is one of three leading automotive manufacturing companies in the united states. Fords hallmark of achievement proved to be a key competence for the motor company as the low cost of the model t attracted a broader, new range of prospective carowners. Gm, as well as many other leading company, are showing that financial success requires strong supply chain risk management. Supply chain management scm activities play a significant role in many of these areas. These recommendations will provide gm with tangible and substantial financial benefit in addi. In previous research into integration and collaboration in the automotive supply chain conducted by the university of michigans office for the study of automotive. Supply chain risks are also managed through our broader risk management functions and processes. It was also a topic of discussion at qads recent explore 2016 user conference. The supply chain typically includes many organizations, starting from rawmaterials suppliers and including component suppliers, subassemblers. To learn about general motors llcs efforts to eradicate slavery and human trafficking from its supply chains. Toyota supply chain management linkedin slideshare.