Teri Takai, the director of supply chain systems, had set aside this time on her calendar to contemplate recommendations to senior executives. The question they’d asked was widely agreed to be extremely important to Ford’s future: How should the company use emerging information technologies (i.e. Internet technologies) and ideas from new high-tech industries to change the way it interacted with suppliers? Members of her team had different views on the subject.
Some argued that the new technology made it inevitable that entirely new business models would prevail and that Ford needed to radically redesign its supply chain and other activities or risk being left behind. This group favored “virtual integration,” modeling the Ford supply chain on that of companies, such as Dell, which had aggressively used technology to reduce working capital and exposure to inventory obsolescence. Proponents of this approach argued that although the auto business was very complex both for historical reasons and because of the inherent complexity of the automotive product, there was no reason such business models could not provide a conceptual blueprint for what Ford should attempt
Teri Takai, the director of supply chain systems, had set aside this time on her calendar to contemplate recommendations to senior executives. The question they’d asked was widely agreed to be extremely important to Ford’s future: How should the company use emerging information technologies (i.e. Internet technologies) and ideas from new high-tech industries to change the way it interacted with suppliers? Members of her team had different views on the subject.
Some argued that the new technology made it inevitable that entirely new business models would prevail and that Ford needed to radically redesign its supply chain and other activities or risk being left behind. This group favored “virtual integration,” modeling the Ford supply chain on that of companies, such as Dell, which had aggressively used technology to reduce working capital and exposure to inventory obsolescence. Proponents of this approach argued that although the auto business was very complex both for historical reasons and because of the inherent complexity of the automotive product, there was no reason such business models could not provide a conceptual blueprint for what Ford should attempt
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