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General Motors Supply Chain Essay

Assignment id 1010619
Discipline Writing
Assignment type Essay
Words 3166
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Introduction through time, the U. S. car sector's market has been experiencing fluctuations due to a lot of reasons including: cost, quality and foreign competition. General Motors Corporation (GM) that had been the top car and truck maker was experiencing falling market share and facing stiff competition from the U.S producers and foreign imports such as the Asian auto manufacturers that included Toyota, Honda and Nissan. The main reason for increased overseas competition was that foreign cars were more fuel efficient, smaller, less costly, and often more reliable than their American counterparts. In a bid to eliminate waste and maintain competitive benefits, GM introduced lean manufacturing by integrating parts of their Toyota Total Quality Production System that was adopted by many Japanese automobile manufacturers to boost manufacturing efficiency. The lean implementation attempt resulted in both operational and an environment improvement but the company still faced challenges inherent with all the automotive supply chain such as: risk, visibility, inventory management, cost containment, customer requirements and globalization. GM now expects its suppliers to embrace a lean philosophy to ensure it will become the low-cost producer of quality products. It uses Just-in-Time (JIT) manufacturing and utilizes supply strategies involving upkeep of regional supply facilities and third party management of logistics. [1] A highly efficient supply chain is no longer capable of managing the complexities of changing global trends thus it's therefore essential to incorporate a smarter distribution chain. Background and Present Situation In November 18, 2010, GM finished the world’s largest in...

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