Ford

Due to the generic nature of computer parts, Dell possesses the ability to negotiate and procure necessary items for plant assembly from several independent purveyors. Therefore, Business-To-Business (B2B) transactions are accomplished with relative ease and minimal cost. Although generic items, such as spark plugs and windshield wipers, are provided to Ford by lower tier suppliers, wholly-dependent, "tier one" partners supply components, such as dashboards and drive trains, that are tailored specifically for Ford, alone. Thus, the flexibility of Ford's chain of supply is vastly compromised. The combination of product complexity and a rigid supplier network adds complexity to the task of introducing virtual integration to Ford"s dated process.
             Secondly, the communication channels and procurement procedures of Ford and its tier network are bound within the limits of traditional phone and fax methods resulting in delaying procurements, clogging inventories and affording errors typical of a manual process. Unlike the fully automated online system of Dell, Ford's manual ordering and accounting procedures waste manpower, amass stock and, in the end, prolong OTD. Furthermore, many of Ford's lower tier partners lack the capital to invest into an Internet Technology (IT) infrastructure that would be necessary to fully support virtual integration. Not only do these suppliers lack the technology and funding for IT initiatives, the incentive to upgrade is, also, non-existent. .
             Lastly, historical dealer retailing and traditional consumer buying habits, both, inhibit the full-scale implementation of virtual integration. The dealer segment of Ford's supply chain has been completely omitted in Dell's business model. Dell takes orders directly from the customer and delivers the product, again, directly to the customer. In the case of Ford, dealer showrooms and car lots have been the only ways of retailing a new car since the inception of the automobile.