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I. L"\TRODVCTIO:'\": ford Motor Company implemented ERP in the early 2000s to improre the efficiency and effecti,·eness of its

global operations. The company's pre,·ious system was a patchwork of disparate systems that were difficult to integrate and

nmnage. This made it difficult to trnck in,·entory, mmrnge orders, and make informed decisions about production and distribution.

2. CHALLL'\'GES L'\' PRE\lOUS S\'STEI\I:

..-~ Dece111rnlizario u : One of the key issues was the decentralization of operations. Ford's various di--isiom operated independemly,

resulting in inefficiencies and a lack of standardization across the organization. This de.:entrnlized stmchm: made it difficult

to coordinate effons and maintain consistency in processes .

..-~ SupplJ· C hain Complexity: Ford's global supply chaiu was incredibly complex, in,·oh·ing a vast network of suppliers located

arotwd the world. Coordinating this extensive supply chaiu pro,·ed challeuging and often led to delays in supply cbnin

nmnagemen1. Ensuring the timely de\i,·ery of components nnd nm1erials \\'llS a significant hurdle.

I ~ Legnc)· S)·~1ems: The legacy systems \\'ere unable to effecti1·ely conuuuuicate or integrate with each other. As n result. data

sharing and decision-making were hindered, making it difficult to track crucial infonnation and m.1ke iufonned decisious. This

technological limitation created iuefficiencies within the company.

,.O! Sealabilit:,· Issues: As ford expanded, the system became increasingly o\'erloaded and slow. affecting the company's ability to

meet the demands of i1s customers. This scalability issue presemed a critical roadb!oek to ford's growth and compctiti>-encss

in the market.

3. ERP DIPLE~IEXT ATIO:-;: To address these clrnlle,1[!es, ford partnered \\ith Oracle Corporation and i,up le111e111ed Or<1cle's ERP

software suite. This system aimed to streamline operntious, enhance fiuancial managemeot. and improYc supply clmiu efficiency.

..-~ Stre:nuliu ed Suppl~· Chain: Real-time ,·isihility into the supply chaiu allowed Ford to reduce lead times and i.tnpro,·e

coordination ,1ith suppliers.

,.O! In nntory Optimization: f ord used the ERP system to optimize in,·emory le,·els. g excess stock while ensuring parts

a.-ailability.

,.O! Effkienl Proce~~es: Automation replaced mamml processes. leading to increased operational efficiency mid reduced error,.

,.O! Global S1a11dardlz:itlon: TI1e ERP system facilitnred standardized processes nttass di1isioos and re[!ions, improring control

nnd efficiency.

,.O! Fimmdal :\I::m:igemen1: Enhanced financial reporting and analysis capabilities empowered Ford to m.1ke infonued fo1ancial

decisions.

,.O! Sealabilit:,·: The ERP system accollltllocl1ted ford's growth and expansion into new markets.

4. ERPDIPLDIL"\IATIO:'\" APPROACH:

,.O! Needs A~~ess mt>nl : Ford annlyzed its systems nnd needs. 11nderstandii.1g diffcrcnl di,ision requirements.

I ! \ 't> udur Sel,.etiun : Oracle ERP wns choseu. tnilored to Ford's oprn<tions.

,.O! Cuoomizntion: The ERP was adjusted to fit Ford's processes while tui.tumiziug o,·cr-.c11stomization.

,.O! Data !\ligl':iliun: Old data was mo,·ed to the ERP system accurately.

,.O! Emploree Training: Staff receiYed extell5il'e training.

,.O! Pha~ed Rollouf: ERP was innudnced gradually 10 minimize disruptions.

,.O! Oug uing Supp ort: Cominuous mouituring and suppo11 addressed post-implementation issues.

:i. CO:'-CLUSIO:'-: Ford's ERP implementation is II case sh1dy in how ERP c11n be used lo impro,·e the efficiency and effecti,·euess

of global operations. Howe,·er. it is i.tuportant to no1e 1hat ERP implementations can be complex nnd d1~!lenging. Companies

should carefully plan and prepare for thell' ERP implemem111ions. and they should implement a cotnprehensil'e change 111anagemeut

plan to help employees adapt to the new system.