November 28, 2018
MIS: FORD MOTOR COMPANY
Ford Motor Company is an American global automaker founded by Henry Ford. Henry's idea was to provide an affordable and reliable car to hard working people, mainly the middle-class. He knew if he could mass-produce these automobiles he could sale them at an affordable rate. With this logic, Ford started the first moving assembly line ever in automobile-manufacturing history. This process reduced the time to build cars tremendously. Today, This Company now assembles and distributes cars and their parts across 6 continents.
Around 1995, Ford came up with a remarkable reconstructing plan called Ford 2000, which involved the company merging its all it international operations into one single global. This plan would help decrease the cost by reengineering and globalizing corporate organizations and techniques. This project had a positive change on processes Ford had already had in place, one being Ford's Order to Delivery time, decreasing it from 60 to 15 days.
Ford also launched its first public Internet site and by 1997, the amount of visits reached a million plus per day. The company's Intranet was launched around this time as well, implementing a business-to-business proficiency extending beyond the company's boundaries linking Ford with its suppliers. The Company joined forces with other automakers such as Chrysler and GM to work on the Automotive Network Exchange. This would help suppliers of the companies manage different ways of interaction with each automaker and stay consistent in technology principles and procedures in the supplier network. New opportunities came about when Ford decided to change up their processes within enterprises by using the Internet. An agreement was made in the supply chain that information technology could improve material flows and decrease inventories tremendously. With the Internet, the Ford 2000 plan was executed very efficiently, which promoted a good supply chain and customer management system. This decreased the cost of Order To Delivery and the manufacturing system that was already in place.
Not only does Ford just follow the its website to provide services to all customers and suppliers, the company also uses SAP software. ‘SAP stands for System, Applications and products in data processing. It provides end-to-end solutions for financials, manufacturing, logistics, distribution etc.”(Marget Rouse, 2018). This software has helped the company to improve customer and supplier satisfaction. It also helped to reduce the cost and increase performance on supply chain management and customer relationship management.
Ford's value chain is similar to other organizations in the auto industry but when they implemented an information system, its value chain improved extremely. The relationship with the suppliers improved and worked out for both sides. The cost of buying material decreased. They were also able to work closely with their suppliers to reduce waste, which dropped cost for both organizations.
Marketing has also become a huge a thing for Ford and its operations. The company is “redesigning its marketing operations globally to elevate the 115-year-old iconic brand”(Media, 2018). They plan to improve customer relationship marketing, website development and performance marketing. Ford has been working with suppliers to gain more information and create new marketing strategies that will increase sales.
The company has joined forces with Caterpillar Logistics to “improve warehousing and its Daily Pars Advantage network for getting spare parts to their dealers”. Their idea for teaming up with Caterpillar was to have a partner with incredible experience when it comes to the automotive supply chain. They're hoping with this strategy to improve the speed of time to market, enhance inventories at each location, and do a better job assisting the buyer.
Beside Caterpillar, the company is also using an SAS platform. This platform helps supports customer relation ship management. An SAS “delivers an open analytics platform that unifies toots, boosts productivity, fosters collaboration and enables business agility.”(SAS, 2018). The SAS improves Ford's existing customer relationship database and delivers a great base for information analysis.
SAP. (n.d.). SAP. Retrieved from https://searchsap.techtarget.com/definition/SAP.
SAS PLATFORM. (n.d.). Retrieved from https://www.sas.com/en_us/software/platform/open.html.
Ford Media Center. (n.d.). Retrieved from https://media.ford.com/content/fordmedia/fna/us/en/news/2018/10/08/ford-modernizes-global-marketing.html.
...(download the rest of the essay above)