eams involving suppliers and dealers can be formed online. Dealers will be able to provide vital data to the company and take part in processes like product scheduling. Feedback from the suppliers will be invaluable information in areas like new product development and design.Main suppliers can form a part of the design or new product development team, playing an active role in cutting costs and streamlining process. 3.Reduction in CostsStreamlining suppliers and distribution via the Web could amount to savings equal to 25% of the retail price of a car.Reductions in costs like procurement costs (due to strategic supplier sourcing), administrative costs (online servicing), communication costs (as it is via the web), inventory costs (custom built cars hence reduction in finished inventory) and storage costs.Costs like promotions and rebates offered to dispose of excess finished inventory will not be necessary.Customers will decide what they want built. That could shorten the current 60-day average time from customer order to delivery, freeing a good chunk of finance tied up in completed-vehicle inventories. Reduce working capital by shrinking excess inventories and wipe out costly rebates needed to move unwanted cars 4.Global AccessThe Internet will enable finding world-class suppliers, worthy of alliances, opening up the marketplace worldwide.Suppliers around the world might be in a better position to supply required materials.Also, Ford employees, dealers, and suppliers will be able to communicate as if they were in the same building, and make joint decisions. Will facilitate to reduce cycle time and inventory requirements by sharing data about business processes with suppliers, dealers and even consumers.Disadvantages:1.Block against E-commerce:The automobile industry is a century-old industry with an infrastructure that impedes change. New online ways to sell cars directly to buyers collide with an entrenched dealer base, which is pro...
