General Motors Supply Chain

Introduction Over the years, the automotive industry market in the US has experienced volatility for a variety of reasons, including price, quality, overseas competition. General Motors (GM), a major manufacturer of automobiles and trucks, has declined in market share, facing intense competition with foreign manufacturers such as US manufacturers and Asian cars such as Toyota, Honda and Nissan doing. The main reason for the intense competition in business foreign countries is that foreign cars are better fuel economy, smaller, cheaper and more reliable than American cars.

For example, General Motors has reduced customs clearance costs by $ 12 million by establishing a reusable container plan with suppliers. In order to reduce the cost of the entire supply chain, General Motors' results show that the cost reduction they achieve is consistent with the company's commitment to the environment, and if they produce record profits, GM He may not care less about the green problem. Companies can save money by reducing the environmental impact of business processes. Savings are often considered an advantage in implementing environmental policies by reviewing supply chain operations, procurement, planning, and managing material consumption for delivering final products. While the general public emphasizes the environment, supply chain managers do not consider the benefits of reducing the company's environmental impact.

The word itself "supply chain" is misnomer. The supply chain is not a linear chain. In fact, they are a network of companies and service providers that "packages" each other, and each product produced is usually consumed by another supply chain as input to the end product of the next supply chain. High-tech components such as processors are everywhere in the car. The link between the oil and gas supply chain and the steelmaker is one of its main inputs. As electronic products are now indispensable consumers, like cornflakes, they are distributed to consumers through Walmart. The supply chain is rapidly becoming a network connection network

Today 's business is managed in a 24 - hour 365 - day supply chain environment. The modern supply chain never sleeps. Reducing time from the supply chain will result in superior customer service performance, faster time to market, shorter order due time, and reduced inventory through ongoing replenishment. As companies reduce their supplier base, management costs are reduced and purchasing power is improved. By concentrating more procurement and negotiation resources on a closer supplier pool, companies are enjoying higher pricing from suppliers. This flow effect also occurs in related supply chain areas such as cargo, warehousing, transportation and handling costs.