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By group 8
Surbhi Singh
Wasim Akhtar
Zeba
Astha
Shilpa Gupta
Sweta Kumari
Purchasing
decision time
More time
Less time
Influence of
reference group
Significant
Less
Evaluation of
alternatives
Option of
customization
Restricted
Extreme
Other concerns
Resale value,
safety and
reliability
Performance, Speed
Buying
compute online
Category of
product
High
involvement
product, more
of luxury
product,
Integral
Moderate
involvement or
low involvement
product, more of
necessity, Modular
Role of third
party
High
Less
High
Control
The prospect of
improved control
over the actions of
suppliers is another
important rationale
for virtual
integration.
Communication and
coordination
Business partners
treated as insiders of
the company
which speeds up time
to market
Relationship
Good relationship
with the customer
Cost
Eliminates the
cost associated
with carrying
large inventory
of finished goods
Q3.Compare the enterprise models of Dell & Ford. Do you think the
financial performances the two firms are linked to their enterprise
models?
Enterprise Model
Comparison
Dell
Operating Principles
Customer
Intimacy
Ford
Breakthrough Objectives/Key
Initiatives
Demand to Delivery
Ford Retail Network
Demand
Pull
Velocity
Order to Delivery
Ford Product Development
System
Virtual
Integration
Focused on strategic
partnerships: suppliers
down from 200 to 47
External logistics
supplier used to
manage inbound
supply chain
Similarities
Suppliers maintain
nearby ship points;
delivery time 15
minutes to 1 hour
Customers frequently
steered to PCs with high
availability to balance
supply and demand
Demand forecasting is
criticalchanges are
shared immediately
within Dell and with
supply base
Differences
Complexity is low: 50
components, 8-10 key,
100 permutations
Assemble facilities
rather than setting
up manufacturing
plants which
reduces cost
Financials
Inventory confined
to suppliers reduces
the inventory cost
and working
capital.
Process Complexity
A large number of suppliers
3 tiers of suppliers
Business was usually over the phone and
fax
Ford a $150billion company enjoys a
tremendous leverage over its suppliers
Annual component price decrease
Powerful independent dealer network
Unionized labor force
5.What historical legacies and operational issues do you think will affect
Fords ability to move to a Built-to-order model?
Contd
Process Complexity
A large number of suppliers
3 tiers of suppliers
Business was usually over the phone and fax
Ford a $150billion company enjoys a tremendous
leverage over its suppliers
Annual component price decrease
Powerful independent dealer network
Unionized labor force