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General Motors: Full-Size Truck Seat Supply Chain
內容大綱
In July 2018, Amir Bell was heading the Operational Excellence (OpEx) team for the Light Duty Pickup Truck Seat Cost Reduction program at General Motors (GM). GM had decided to launch the new full-size truck program in 2019 at assembly plants in Fort Wayne, Indiana, and Silao, Mexico. To increase profits, GM sought to decrease costs in the manufacturing process. At the time, GM enjoyed a long-term tier-1 supplier relationship with Skübi Automotive North America LLC (Skübi) for its truck seats. Skübi’s facility in Indiana could not fully support the seat assembly for the new truck program, but Skübi did have capacity at its plant in Ohio, and so it approached GM about moving all or some of the new truck seat production. However, GM had investigated some additional cost-saving opportunities. GM could contract directly with tier-2 suppliers (directed buy) for some parts and negotiate volume pricing, though these arrangements could harm relations with long-time supplier Skübi. Alternatively, GM could assume the risk of raw material cost fluctuations by entering material indexing contracts with its directed-buy suppliers. Bell needed to analyze these alternatives and their related risks, and choose the most cost-effective option for GM.
學習目標
This case is suitable in undergraduate- and graduate-level courses on strategy and operations management courses, especially in sessions focused on supply chain management. After working through the case and assignment questions, students will be able to do the following:<ul><li>Identify the advantages and risks of directed-buy opportunities.</li><li>Identify the advantages and risks of material indexing.</li><li>Create a multi-tier supply plan capable of achieving cost savings while satisfying demand.</li></ul>