Analysis of Ford Motors Supply Chain

Ford Motor Company

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Contents
Introduction...........................................................................................................................................2
Literature Review..................................................................................................................................3
Analysis of Ford Motors Supply Chain.................................................................................................4
Supply Chain of Ford........................................................................................................................4
Managing Quality..............................................................................................................................6
New Product Development................................................................................................................7
Conclusion and Recommendation.........................................................................................................9
References...........................................................................................................................................11

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Introduction
Supply Chain Management is the broad range of activities that required planning, controlling
and executing a product’s flow. An organisation acquires the raw material in order to
distribute the finished product to consumers. Supply chain management is an expensive
process that relies on the partners from suppliers to manufacturer. It is essential for the
organisation to maintain its supply chain in the context to attain the objective. Supply chain
management of the company boost the customer services, reduce the operating costs and
improve the financial cost as well. It is a fact that the organisation survives efficiently when it
has enough funds to survive in the market. It is a process that maintains all activities and
functions of operation that helps to operate effectively in the market. An organisation faces
the challenges and risk in order to create the network between all the entities. It is required
for the organisation to analyse the supply chain network in order to maintain supply chain.
The main purpose of this report is to understand the concepts and functions of supply chain
management. Ford Company has been taken into consideration to analyse its supply chain.
Ford Motor Company is a multinational automaker that offers the services of sells
automobiles and commercial vehicles. The organisation operates under the industry of
automotive. It manufactures one of the most luxurious cars under the Linclon brand. It also
owns Brazilian SUV manufacturer troller, 8% of stake in Aston Martin, and 32% of stake in
Jangling Motors. The company is listed under the New York Stock Exchange and it analysed
that it is a second largest automaker in US and the fifth largest operator in the world. It has
213000 employees in the world around 90 plants and facilities in the world. The company
earned the revenue of $156.776 million and operating income $4.813 billion. It introduced
the different methods for large-scale manufacturing of cars and scale management of an
industrial workforce.

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At the beginning of the report, the literature review will be done on the operation, and supply
chain management theories. After that, analysis will be done on the supply chain of Ford
Motors. At the end of the report, the recommendation will be mentioned in order to achieve
the success.
Literature Review
According to Christopher 2016, Supply chain management is a network of facilities and
distribution options that performs the different functions of supply chain such as
procurement, transformation of material and many others. It involves all stages which directly
or indirectly include the prices of satisfying the customer request. It is process of chain
management influences the operations management, distribution management, marketing,
logistics and transportation in order to perform the activities of all stages. There are different
task that involves in the process of supply chain such as flow of goods and services and
storage of raw material, work in progress and finished goods. But as per the opinion of
Stadtler, 2015, supply chain management is a concerned of sustainability and risk
management. It is a process of supply chain maintains the activities that help to reduce the
environmental risk. This definition defines the different areas of systems engineering,
procurement, information technology, industrial engineering, and marketing. The opinions of
both the authors are contrast and it can be said that it is a process of designing, planning, and
execution, monitoring and controlling the activities of supply chain with the purpose of
creating the net profit.
Operation defines the process of action of facts of being active and effective. Operation
management is an area of designing and controlling the process of development of business
operation in the production of goods and service. According to Heizer, Render, Munson,
2017, it is the primary concerned with the organising, supervision and planning in the terms