Part 1: Executive SummaryAfter carefully analyzing Ford’s existing supply chain I immediately became aware of its highlycomplex nature. This high level of complexity combined with other internal and external factorshave pushed Ford to search for solutions in order to overcome the costly supply chain challengesthat they are facing and may continue to face in the future. Ford’s major difficulty in their present system is: the inefficient control of their large data base and complex network of suppliers, the existence of independent distributors and their inability to communicate and servetheir customers directly.Realizing an urgent need to modify their supply chain in order to make it more cost effective andmore profitable, and after careful analysis of the whole situation, I have recommended the partialimplementation and execution of the virtual integration direct business model that has been used by Dell. Through this model, Ford will use the emerging information technologies and internet aswell as new ideas from high tech industries in order to interact and transact with their suppliersand end users. Furthermore, Ford can boost its sales by providing better customer service and byhaving faster communication between suppliers, manufacturers, and customers in the valuechain.This proposed system will have to run concurrently with the existing supply chain so that Fordwill cover both market segments at the same time. Since Dell and Ford are two different types of industries, one is in computer manufacturing and the other is in auto industry, it does not seemright for Ford to implement exactly the same "virtual integration model" as Dell. In fact, if Fordimplements the full direct business model alone and abolished its existing supply chain then Fordwill certainly run into a high risk of losing their business to competitors due to the fact thatcustomers want to test and feel the car before they buy it for a large amount of money. On theother hand, when customers buy computers on line they don’t have to worry about touching andtesting the computer, all they require is a better price than the retail shops and the product’s specsare according to their needs.Ford should set up a special department in order to handle this new business process. Investmentin new high tech equipments is required as well as training should be provided before the new project’s kick off date. Suppliers’ computers should be linked to Ford’s master computer network and customers should be made aware of this new shopping experience for buying anautomobile.To measure the performance of this model, Ford should schedule periodical review andevaluation meetings. Recommendations for improvements should be noted along the way inorder to be evaluated. The improvement of customer service and shareholder value should be themain aim of the whole project. At this time it’s hard to anticipate its success or failure, but byinvesting time and effort into it I will be confident of its success if not in the short term it willdefinitely in the long run