Recommendations ford.docx - Recommendations 1 In order for...

Recommendations
1) In order for Ford to keep technologically advancing, they will need to keep their suppliers
on track with them and develop direct links. Ford should invest in setting up a more web-based
supply chain system that would allow the suppliers to use their strong IT capabilities without
having to invest a lot of capital in emerging technology and allow suppliers to access the system
to input the progress of production as well as to take part in future designs.
There are several reasons why this web-based supply chain would be beneficial. First, suppliers
would be able to work off of a central design database in which Ford could control their level of
access. Price variable inputs could be independently established for each supplier so as to not
disclose the actual cost of the material. Due to an aggressive purchasing strategy, Ford does not
like to disclose cost of contracts between suppliers.