Automotive Logistics Global Conference & India conference
Matthias Schulz
Director North America Material Planning & Logistics
Ford Motor Company
Amlan Bose
Vice President - Material Flow Engg., Logistics Network and Exports Operations
Ford Asia Pacific and Africa
Nigel Harris
President
Ford India
The 2014 Automotive Logistics India conference, held in Gurgaon, revealed that despite years of lacklustre growth or declines, the Indian automotive logistics industry has not lost its hope or belief in the country’s promise. Buoyed by the reforms expected from the recently-elected government, executives are now expecting ‘acche din’
The automotive industry and supply chain are at the heart of the campaign, as it is India’s manufacturing
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The fall has been partly made up by exports, however the weakness in its capacity utilisation in Chennai is a risk ahead of the new plant. Harris admitted that the current scale for carmakers like Ford in India was still too low. “The domestic sales and exports from India are not enough to achieve economies of scale,” he said. However, India has shown glimpses that it is about ‘more than hope’. The launch of the Ford Ecosport, which is now built in Chennai, has been a strong success, with sales and export volume above expectations. Sales were so strong, for example, that order banks for the vehicle in India were up to six months long earlier in 2014. The company has since largely been able to catch up suppliers and capacity, but Harris admitted that the company had lost some sales. “We had allocated production capacity of 125,000 Ecosports in Chennai, of which 50,000 were designated for exports,” said Harris. “We couldn’t let down our export commitments, and when the domestic demand was stronger, we fell …show more content…
Amlan Bose revealed that since 1999 the carmaker had used a third party logistics (3PL) model, in which Ford relied on a logistics provider to handle its inbound logistics partly through its own fleet, and partly through arrangements with carriers. However, it has recently switched to a ‘lead logistics provider’ (LLP) concept with Penske Logistics, in which the LLP owns no assets in India and focuses on optimising transport and logistics flows. Where necessary, said Bose, Penske would adjust schedules and routings on a daily basis to match the changing demand (read more
Until recently, the Ford Motor Company has been one of the most dynastic of American enterprises, a factor which has both benefited the company and has brought it to the brink of disaster. Today Ford is the second largest manufacturer of automobiles and trucks in the world, and it’s operations are well diversified, both operationally and geographically. The company operates the worlds second largest finance company in the world, and is a major producer of tractors, glass and steel. It is most prominent in the US, but also has plants in Canada, Britain and Germany, and facilities in over 100 countries.
In many ways, the automotive industry has huge impacts on Canada. The impact it has creates jobs, and services. It also boosts economy and contributes to its success. Over the last two decades, the automotive industry has been a leading contributor to Canada’s economy and is a primary factor as to whether or not the economy will be successful. There are many contributing branches of the sector that allow it to be successful. This is shown through the production and manufacturing of vehicles, as well as the sale of the vehicles. The automotive industry has had a significant impact on Canada’s economy over the last 10 years. If the production and sale of domestic vehicles were to decline, Canada’s economy to be severely crippled and fall back into a recession.
There are a lot of factors that determines whether or not a company will be successful. These factors are usually derived from economics. One factor that I plan to focus on is scale economies or better known as economies of scale. Firms that have expanded their scale of operations to obtain economies of mass production have survived and flourished. Whereas smaller firms who have not been able to expand have usually ended up as high-cost producers. The topic discussed will be the Italian automotive industry and how it is affected by economies of scale.
Before 1903, only rich members of the society could afford having a vehicle. Henry Ford, as an excellent industrialist and businessmen, saw an opportunity in a market where automobiles were considered to be a niche product. Albeit, Henry could still face amazing revenue by just producing cars for rich members of the society, making money was never the prime goal of his. Henry Ford’s intentions were much greater. Considering the external environment of the company in the past, Henry Ford wanted to form a successful relationship with 3 main players of such environment; suppliers, competitors and customers. His understanding of external environment went hand in hand with his
Decline in sales of vehicles in India and Russia impact Ford’s international growth and competitiveness.
The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).
It is no doubt that automobiles have become a way of life in the current society besides the transport sector contributing immensely to the economic growth of every cou...
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
* Ford Parts and Motocraft * Ford and Lincoln Accessories Ford and Lincoln Extended Service Plan (ESP) (FMC Annual Report 2013 p. 149). Planning Every successful company needs a competitive advantage. As part of our companies future, the team has researched various goals and strategies that will move Ford forward and allow them to be competitive in the changing market. “Ford must solve its nagging overseas problems and then "prove" that it can weather the next down-cycle without slashing dividends or product programs” (Smith, 2000, p. 26).... ...
Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values).
...e SMS will be sent) who can go to the branch to get his car. The shipping system records information about the sender such as the sender car, truck number, etc.. and it also records information about the client. Then these information are linked together. Reports about each product with information about client and sender are written (let us say weekly) and these reports are sent to the top management so that every process is monitored to follow any problem if found and try to enhance the procedure. Also this information can provide which branch is working the best and which is working the least so to enhance the quality of work. This is a strategy that the company is following in order to reach its objectives found in the mission.
In logistic industry, they have been through lots of challenge in worldwide market. As the containerization of the global economy scopes, a phase of development and explanation, ports find themselves inserted in ever changing commercial environment where logistics is the forefront. Thus, this industry reaches a phase of maturity and rationalization due to the process of logistic on land.
Ford is forecasting that 2010 sales in industry will rise to between 11.5 million and 12.5 million vehicles, up considerably from last year’s 8.4 million. Boudette, and Dolan, 2010). Ford is about to launch its smaller vehicles; less than two years ago Ford Motor’s plant in Mexico was building big pick-up trucks. But Ford has retooled to produce Ford’s small Fiesta car, due to go on sale in America for the first time in June. Simon, 2010).Mulally is the architect of Ford’s remarkable recovery in its fortunes.
International logistics requires many different options and requirements to be met in order for a company to operate internationally. It’s like a big puzzle that must be put together, in order for all the goals to be met. As described above, there are many options to consider, and sometimes what appears to be an option really isn’t. It is not difficult to hit a road block, and you must start over with a new plan. Once the logistics plan is in place, you must constantly look for improvements in order to maximize profits and goals.
Ford is enjoying an increase in customer satisfaction, sees huge revenue opportunities for developing and retaining loyal product advocates, and has taken both complexity and cost out of the supply chain.