Assignment On Logistics and Supply Chain at Ford

Running head: UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT
FORD
Understanding operations, logistics and supply chain at Ford
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UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT FORD1
Introduction
The concept of supply chain management is important because of the fact that through
the increased level of supply chain the Ford Company will definitely aim in expanding their
business in UK as well as outside UK. The implementation of theories in the form of innovation
will help the company to bring more updated automobile in the UK market. Now in order to
sustain within the industry the first and foremost thing the company need to focus is to counter
the competitors. Through the increased level of the production, the company will also able to
increase their customer base. Improving logistics management will allow the company to bring
in better level of communication within the managers that will really benefit the resource
mapping of the company. However, it has been seen that the Ford Company has brought in
assembly of line technology for the first time within the automobile industry so that they can
increase the profit through cost minimization.
Critical review of relevant Operation, Logistics and Supply Chain Management theories
In order to increase the rate of production ability for any company, it is necessary for the
companies to follow theories of operation, logistics and supply chain management theories.
Through the incorporation of these theories into the policymaking, the Ford Company will be
able to indulge development within their policymaking so that marketing of the products can be
enhanced.
Theory of operational management
Through the incorporation of management, the companies are mainly helping the
development of business as the companies are continuously bringing innovation within their
product and process design. Thus in order to increase the overall rate of the production, it ois

UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT FORD2
highly important to identify the scope or opportunity. Ford Company at first started the business
in US and later on the company expanded the business in outside US. Now in order to highlight
the incorporation of the business, the company will implement better grounds of operation that
will increase the marketing of the products. Ford Company also took the theory of operation
seriously and through assembly line techniques he used to import the technologies behind any
spare parts of the vehicle and used to manufacture the cars in the own manufacturing hub.
Theories of logistics
Use of Social exchange theory or SET is more predominant in case of automobile
industry as it claims the best method of practice that are being done by the automobile companies
to estimate the values of the customers for their automobiles. This actually helps in the
development of better and advanced level of automobile and bring them in the market. Ford also
used this theory and came into limelight. At first Ford was the pioneer manufacture of the
formula one cars and gradually they shifted towards the manufacturing of commercial vehicles.
Innovation is one of the important thing that will definitely bring in high quality of products and
the customer base will be intact through the use of innovation. In order to determine the value at
which society is ready to accept new products in exchanging old products is entirely lying on the
consumer behavior. It is in the hand of big companies to control the demand of customers
through their new products within market.
Use of agency theory is important for the development of high skilled technology and it
is important to bring new learning system for the agents regarding the marketing of the products.
It has been seen that when the agents are dealing with the products need to introduce the resource
making abilities and how they are dealing with problems that are coming on the way of their
business. Using agenda theory is one of the important concept that is continuously pertaining the

UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT FORD3
manufactures to deal with best way of manufacturing the vehicles and deliver them in the
market.
The Delivery system at Ford over the past two decade have changed significantly in
Europe in a similar way it have transformed in North America. Ford has cut down its
unprofitable modes which impacts on the logistical flow. Ford nearly produced and sold around
2 million vehicles yearly in Europe by the end of 19090s (DHL Resilience360 2019). Across the
network in Europe, the outbound and inbound flow of logistics across differing infrastructure has
increased at Ford. The global exports and imports for both vehicles and materials in and out of
Europe have seen a significant rise. For improving visibility and tracking Ford have partnered
with its LLPs. DHL and Ford have combined information system from production system at
Ford with telematics tracking of the truck through its inbound network for gaining real time
information of the incidents (DHL Resilience360 2019). The innovation and technology
available to Ford to proactively mitigate risks and adapt to disruptions in supply chain ultimately
makes Ford stand out amongst its competitors.
As an automotive manufacturer with business operations in more than 60 countries and
with an approximate of 11,000 suppliers, the managing Supply Chain at Ford is undoubtedly
really challenging (Epa.gov. 2019). Ford lay its efforts in aligning is supply chain to keep up
with its environmental and social values. The strategy of for to maintain the effectiveness and
efficiency of the supply chain globally is the benchmarking of the supply chain done with the
scope of identifying the suppliers with highest impact on the organization and further prioritize
the engagement of the suppliers with the organization. Developing and managing a team and
building guidelines to support the suppliers on social and environment relate issues whilst