Archive for GM

SummerCon 2018: A Great Supply Chain Conference

There is terrific payback from supply chain design solutions. At GM, the supply chain design team is an in-house consulting group. Annually, the projects they take on save between 5 to 10 percent of the in scope spend. They have done many projects in the logistics area, some on an ongoing basis. Logistics costs as a percentage of revenue decreased every year from 2013 to 2018. That is a remarkable feat in today’s freight environment. Considering the size of GM’s transportation spend, $6.5 billion, and the length of time they have been at this, it would not surprise me at all if this small team has saved GM over a billion dollars.

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Supplier Risk Management and the Automotive Supply Chain

I came across a white paper from PriceWaterhouseCoopers (PWC) called “Seizing Opportunity: Linking Risk and Performance”.  In one place, the paper highlights a “global automotive manufacturer” that was “experiencing significant losses due to a key risk in its supply chain:  supplier bankruptcies.”  The company faced the direct costs of those failures, as well as the “indirect costs derived from the poor product quality, unreliable supply, and management distraction” that resulted from the supply chain disruptions.  […]

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Do Procurement and Supply Chain Folks Exist in the Same Universe?

While conducting an Internet search, I came across a course offered by The Quest Team to sales people in the semiconductor industry.  The course is called “Combating Aggressive Supply Chain Management:  Strategies and Tactics for Leveling the Playing Field”.  Here is part of the course description: “The SEM industry has been hit with increasingly aggressive customer supply chain management programs, initially introduced as PICOS, which have become more sophisticated and divisive. Their ultimate purpose is […]

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GM Bankruptcy: A Catalyst for Build-to-Order Cars?

I’ve heard that the Chinese symbol for “crisis” is composed of elements that signify “danger” and “opportunity.”  A professor of Chinese language and literature at the University of Pennsylvania says this is untrue, which is too bad because it is such a good story.  It is also exactly the situation that GM finds itself in.  The bankruptcy creates an opportunity to create a new value chain.  Specifically, it creates an opportunity to move to a […]

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