Supply Chain Management Practices in Automobile Industry: Study of Ford vs. Toyota
Dhaka University Journal of Business Studies, Vol. 30, No. 2, pp. 75-90, 2009
20 Pages Posted: 15 Oct 2011
Date Written: December 1, 2009
Abstract
Supply chain management (SCM) is working its own way onto the strategic agendas of CEOs in an expanding list of industries, from automobiles to personal computers to fashion retailing. There is very little research in this area particularly in the automobile industry. The current study aims to compare the supply chain management practices of two of the world’s largest automobile companies, Toyota Motor Corporation and Ford Motor Company. Analysis was done in the area of each company’s procurement and outsourcing strategies, relationship with alliances, and the use of information technology to obtain competitive advantage. International challenges facing both companies’ supply chains are also discussed. We have found significant variation in the SCM practices of the two companies. The findings of the study can be useful for the automobile industry in Bangladesh.
Keywords: Supply chain management (SCM), Procurement, Outsourcing, Strategic alliances, Global challenges, Automobile industry
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