Foundations and Information System

MIS Report
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MIS Report
Part A
Information technology has developed into a tool for business operational efficiency. Most businesses rely on the inputs from technological advancements to integrate their operations, cut costs, and increase efficiency. Ford Motor Company is among the organizations that have seen revitalization through the inputs of emerging technological forms. Ford has replaced 30-year-old antiquated systems and work habits with new, streamlined processes operating on a state-of-the-art integrated SAP Service Parts Management (SPM) platform as part of its global Business Technology Renewal effort for its customer service division. The carmaker presently executes the four SAP SPM solution components globally. With some of the activities in the implementation process outsourced to Westernacher, Ford indicates the efficacy in applying the new information systems to its global operations.
Overview of the Company
Ford Motor Company, commonly known as Ford, is an American multinational car manufacturer. The company was founded in 1903and sells automobile parts, automobiles, and commercial vehicles under the Ford brand. Ford extended its portfolio and sold its luxury products within the Lincoln brand. Ford has extended its operations globally by acquiring some of the players in the automotive industry, including a 32% stake in Jiangling Motors, an 8% stake in Aston Martin of the U.K., and a stake in Troller, a Brazillian SUV manufacturer. In 2020, Ford was among the leading automotive organizations in the world. According to Pentacoff (2021), Ford commanded a global market share of 13.87%, making it the third leading automotive organization globally after General Motors with 17.3% and Toyota Motor Corporation at 14.41%. With its operations extending beyond defined geographic areas, it can be challenging to keep track of all the organizational activities. Ford is responsible for fulfilling 46 million yearly order lines for 4,300 dealers, obtaining 235,000 distinct parts from 2,800 suppliers through a network of 29 distribution centers (Westernacher, 2021). Satisfying all those stakeholders and customers is a difficult task, especially since those data only relate to Ford's North American business, which is the company's largest market globally. With Ford's intention to instill market relevance in a competitive industry, resorting to technology for cost management, business unit integration, and operational efficiency is inevitable.
Technologies for Ford
Ford has collaborated with SAP to instill highly integrative information systems within its structures. The carmaker now successfully executes all four SAP SPM Solution components worldwide: Service Parts Planning (SAP SPP), Warehouse Management (SAP EWM), and Commercial and Finance Processes (SAP CRM and ERP). For almost a decade, Westernacher Consulting has aided Ford in this business transformation by implementing SAP SPM across their European, North American, and Asia Pacific markets. Each of the above forms of SAP executes a different role in the organization's success.
Service Parts Planning (SAP SPP). Service Parts Planning (SAP SPP) is primarily among Ford's information tools. SPP (service parts planning) provides planning features unique to service parts as well as transparency throughout the supply chain, from the time demand arises to the time the product is delivered. Distribution structures or BOD-bill of distribution, which features all the operational locations, are where the organization plans for the service portions (Westernacher, 2021). Distribution centers, contract packagers, and the organization's consumers and dealers are all examples of locations accommodated within the SPP suite. For a company that operates in a highly competitive industry, focusing on the future is necessary. Hence, working with future BODs and the current BOD when employing the SPP suit is possible. This implies that the management can specify a future date when a BOD will take the place of another BOD. For example, the system considers this future BOD when estimating and planning distribution requirements (DRP).
The applications of SPP are highly integrative, thereby marking its suitability for a multinational organization. During the planning process, SPP evaluates the features of each product. It considers the regions where the organization needs to deliver a product the most, the product sales behavior, and whether the product is fast-moving or slow-moving (Westernacher, 2021). With that information, the organization can only operate attractive product portfolios. On the same note, the SPP suit advises on the market penetration strategies to deliver highly efficient outcomes. The company also can decide whether they want to undertake period-based service parts planning based on the forecast or if they want to plan your service parts based on a reorder point for each product based on these attributes. When period-based planning is used, SPP generates a forecast for a product based on either past sales figures or leading market indicators. If the company manifests accurate information about their installations, that is, about their equipment on the market, which is relevant for the future sales behavior of their service parts, it is then recommended that using leading indicators as the basis for making the forecast is ideal in SPP suit (Ward, 2013). For Ford, the implementation of SPP creates a platform for growth in which the organization has control over its services and products and still has a better understanding of the industry needs. In the long term, SPP enhances the organization's efficiency in approaching the industry.
SPP provides high-quality analytics applications that are well-suited for monitoring and evaluating a business's operational and grand strategies. SPP generates notifications in unplanned or crucial events that arise throughout the planning phase in every key business unit (Ward, 2013). Further, SPP indicates impending supply shortages in the shortage monitor so that the entity can directly intervene in planning if necessary to avoid a shortage. In the service fill monitor and the service loss analysis, the organization may assess the whole planning process as well as the implementation of their penetration strategy, identifying strengths and weaknesses in the logistics chain. Also, an organization such as Ford can use the supplier delivery performance rating offered in the SPP suit and the inbound delivery monitor to match the supplier operations and abilities with the organizational needs. These features enable the entity to assess not just its internal planning and execution but also the performance of its suppliers and freight forwarders.
Warehouse Management (SAP EWM). Warehouse Management (SAP EWM) is another tool that Ford has instilled in its operations to increase efficiency while reducing operational costs in both local and multinational operations. SAP Extended Warehouse Management (EWM) is used to efficiently manage inventories in the warehouse and support goods movement procedures (Ward, 2013). It enables the organization to manage the inbound and outgoing procedures as well as the movement of goods in the warehouse. Incoming and exiting materials, goods reception and issue, client order fulfillment, and distribution of goods are the primary processes in a warehouse. There is no need for Warehouse management to manage items if a corporation does not store any goods. The inbound process entails storing products in a warehouse and determining their location, whereas the outbound process is collecting up the commodities. When a material is stored in a warehouse, it is placed in a storage bin, where its current position ma...