Tweet

Is Ford's auto-xchange the "Real Deal?" (Survey Response 2)

Written by: Jon Hansen

Article Overview: In a recent video that was released by The Ford Motor Company, Ford's Vice President and Chief Information Officer, Jim Yost indicated that the company has to "share information in real-time" and therefore can no longer use "the sequential processes” in which there were many “handoffs" and "transfers of information." Yost also emphasized the fact that Ford needs to "integrate much more closely with their customers, supply base and even internally," as well as stressing the importance of making information available to multiple levels of their supply base "simultaneously," thereby eschewing the current "cascade processes that might take days, weeks and even months" to disseminate. To enable you to respond to this question, you can access both the video as well as the corresponding article by contacting the author.

Is Ford's auto-xchange the "Real Deal?" (Survey Response 2)

Rick, Principle - The SUpply Chain Center, Denver, U.S.

Jon, frankly I think FMC is on its last legs. They face the same problems today as they did 10 years ago when they had a real opportunity to address them.

True, they are a big company (as Jim smirked); but in reality it is about $160 billion in cost and very little profit. That makes them a very small company in my mind. Their problem is that they have historically relied on "industry insiders" and shunned anyone from the outside with innovative ideas. A-X could be the first crack in their armor of letting fresh innovation inside.

They sound like their moving to a marketing company more than a manufacturing company.

I don't think I'm onboard with your view:

“The key starting point is to recognize that the term supply chain is a misnomer in that it implies a sequential order of events (in the spirit of your question, a non-deterministic set of algorithms which aligns with the equation-based modeling used by most software vendors).

Forward thinking companies have always see the supply chain as non-sequential. They didn't always have the best solutions, but the approach was correct.

My Response:

I am inclined to agree with you that "forward thinking companies have always seen the supply chain as non-sequential." But given the high rate of initiative failure, companies that have recognized this fact are definitely in the minority.

The fact that Ford, one of the "big" automakers, having suffered significant set-backs first as a member of the Covisint consortium, and then with their own Oracle-based Everest program is now talking about synchronization and the need for real-time, simultaneous interaction at multiple stakeholder levels is telling.

Especially in a world where models such as SCOR and Six Sigma continue to carry unwarranted weight in terms of mainstream acceptance as "standards" by which supply chain efficiency is measured.

Like Vendor Rationalization in which its broad application across an enterprise's entire spend has been largely discredited, is still be championed in some accreditation courses.

Whatever Ford's motivation might be for allowing this first "crack in their amour" as you put it, they are still a high profile company whose move will undoubtedly be a bellwether of things to come.

And that is why this is the most exciting periods in the evolution of supply chain practice.

Rick's Closing Comment

So true Jon. I wouldn't bet on their success. Sad that the legacy of the man who gave us such concepts as vertical integration and the assembly line would end up in such a mess.

Related Articles
  Simple Ways to Survey Your Webinar Audience
  the A-Z of sales success
  Banks Continue To Hold Back on Lending
  Writing effective customer surveys
  The Power of Choice

Article Tags: algorithms, armor, automakers, best solutions, consortium, fmc, industry insiders, innovative ideas, last legs, mainstream acceptance, manufacturing company, marketing company, misnomer, principle, rationalization, scor, six sigma, software vendors, supply chain efficiency, synchronization



Related Forum Posts
Survey the Landlord - Terry, my suggestion is simple but powerful - Survey. Survey Landlords and find out what is important to them. By doing this it does two things: 1. You will find out trends/under-operated services that Landlords are currently unsatisfied with = your client will be able to fulfill 2. You are infact Marketing your clients services by doign this because when you are approaching your landlords it not a sales pitch and they have someone to clear their frustrations with. Then when you approach them after a month (when you've put your numbers together and identified services that are most important) you can remind them of the survey and share with them the results. At this point you can end with an offer to use your clients services to manage their property. I use this method with my clients who are looking for new services to develop in thier markets. It's simple but powerful.
Re: What newsletter program to use? - Like GT and David I use Get Response and have not had any problems with them other than when they were converting to their upgrade. So as long as they continue to give me the service I will stick with them. I know that most people recommend Aweber. MichelleJ
Survey Monkey - Hi ltrahan - interesting concept - how have you found Survey Monkey? Is it a good service?
Survey Monkey - I found Survey Monkey to be a good service as well, it was useful and got the job done. Like Itrahan was saying though, the basic "free" services are a bit limiting though.
Who inspired you to start? - When I was a teenager I read "The Art of the Deal" by Donald Trump while on a road trip to New York City. It helped inspire me to want to start my own business and is also one of the reasons why I have created so many famous entrepreneur profiles. I believe that by modeling the success of other entrepreneurs you too can become successful. Who was it that inspired you to start your business?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

In the Year 2020 . . . Process

How Many Buckets Do You Need for Retirement?

Leader's Success Secret: Celebration

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.