Case Study: For General Motors, Outsourcing Is a Way of Life
Case Study: For General Motors, Outsourcing Is a Way of Life
The most talked-about outsourcing contract in recent memory is GM's $15 billion deal split among six major suppliers. One of the most interesting elements is the automaker's effort to have its suppliers collaborate to create a set of standardized business processes.
If there were a master list of companies closely associated with outsourcing � not in terms of money, but in terms of publicity � General Motors would likely appear at or near the top. So it's natural to be curious about how the company handles its suppliers. This article, billed as a case study, offers a quick view of how GM shifted its strategy from one in which it was involved on a micro-management level to one in which it narrowed the number of suppliers and offloaded more of the management responsibilities to them. In a further effort at simplification, GM began awarding all contracts on a global basis, established standardized work processes for all parts of the world and created a single supplier interface. The results: added efficiency, lower costs and greater speed of execution.
posted by Victor Lloyd Smith @ 1:31 AM
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