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Order To Delivery:Supply Chain TransformationAt General Motors
Order To Delivery:Supply Chain TransformationAt General Motors
Order toDeliveryOrder toDelivery
Dana KovachDirector, Global Strategy Order-To-DeliveryGeneral Motors Corporation
Dana KovachDirector, Global Strategy Order-To-DeliveryGeneral Motors Corporation
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The Supply Chain Transformation ChallengeThe Supply Chain Transformation Challenge
50 Countries of Operation
200 Countries WithGM Presence
70 Assembly Plants
8.6 Million Vehicles
$6 Billion Logistics Spend
50 Countries of Operation
200 Countries WithGM Presence
70 Assembly Plants
8.6 Million Vehicles
$6 Billion Logistics Spend
$105 B Material Purchase Spend
72 Product Programs
20 Vehicle Lines
11,931 Product Suppliers
10,000+ Dealers
69 Transportation Providers
$105 B Material Purchase Spend
72 Product Programs
20 Vehicle Lines
11,931 Product Suppliers
10,000+ Dealers
69 Transportation Providers
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What Are the Key Trends Driving Change in the Automotive Supply Chain ?
How Is General Motors Responding ?
What Is the Impact on Our Business?
What Are the Key Trends Driving Change in the Automotive Supply Chain ?
How Is General Motors Responding ?
What Is the Impact on Our Business??????????
What Are the Key Trends Driving Change in the Automotive Supply Chain ?What Are the Key Trends Driving Change in the Automotive Supply Chain ?
Customers Are More Demanding
Competition Is More Intense
Emerging Business Technology Impacting Traditional Models
Customers Are More Demanding
Competition Is More Intense
Emerging Business Technology Impacting Traditional Models
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150 Million People In The U.S. Accessthe Internet
They Spend 10 Hours Online Each Month
Majority of Car Buyers Research Their Purchases on the Internet
150 Million People In The U.S. Accessthe Internet
They Spend 10 Hours Online Each Month
Majority of Car Buyers Research Their Purchases on the Internet
The Internet Has Allowed More CustomersTo Have More Knowledge Than Ever BeforeThe Internet Has Allowed More CustomersTo Have More Knowledge Than Ever Before
CUSTOMERS ARE MORE DEMANDINGCUSTOMERS ARE MORE DEMANDING
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COMPETITION IS MORE INTENSECOMPETITION IS MORE INTENSEMore New Products Are Being Brought Fasterto Market
Continuous Improvement in Quality With Simultaneous Reduction in Cost
Stream of Technological Development by Manufacturers, Suppliers, and Non-Traditional Competitors
More New Products Are Being Brought Fasterto Market
Continuous Improvement in Quality With Simultaneous Reduction in Cost
Stream of Technological Development by Manufacturers, Suppliers, and Non-Traditional Competitors
Cadillac NightVisionCadillac NightVision
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EMERGING BUSINESS TECHNOLOGY IMPACTS TRADITIONAL BUSINESS MODELSEMERGING BUSINESS TECHNOLOGY IMPACTS TRADITIONAL BUSINESS MODELS
Rapid Cycles of Change
Cross-Functional Integration Required
Extended Enterprise Information Visibility
“SENSE & RESPOND”!!!!!!!!!!
Rapid Cycles of Change
Cross-Functional Integration Required
Extended Enterprise Information Visibility
“SENSE & RESPOND”!!!!!!!!!!
The Customer is in ControlThe Customer is in Control
GM Is: Moving From Manufacturing-Focused to Customer-Focused,
Moving From Batch-Build to Sense-And-Respond, andLeveraging the Information Explosion to Achieve Operational Excellence
GM Is: Moving From Manufacturing-Focused to Customer-Focused,
Moving From Batch-Build to Sense-And-Respond, andLeveraging the Information Explosion to Achieve Operational Excellence
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What Does Customer In Control Mean?What Does Customer In Control Mean?
Customers Shouldn’t Be Forced to Compromise on Exact Vehicle of ChoiceCustomers Should Expect Fast Order Fulfillment Lead TimesCustomers Should Expect Reliable Delivery Promise Commitments and Real Time Order Status Visibility
MAKE IT EASY TO DO BUSINESS WITH GM
Customers Shouldn’t Be Forced to Compromise on Exact Vehicle of ChoiceCustomers Should Expect Fast Order Fulfillment Lead TimesCustomers Should Expect Reliable Delivery Promise Commitments and Real Time Order Status Visibility
MAKE IT EASY TO DO BUSINESS WITH GM
Opel CorsaOpel Corsa
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Creating and Leveraging New Tools and RelationshipsCreating and Leveraging New Tools and Relationships
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Integrating and Driving Operational ExcellenceIntegrating and Driving Operational Excellence
Design & Engineer
Design & Engineer
Purchasing/ PC&L
Purchasing/ PC&L
Manu-facturingManu-
facturingVehicle
LogisticsVehicle
LogisticsSell &
ServiceSell &
ServicePlanningPlanning
Order to DeliveryOrder to Delivery
Real Time Information Visibility/Transparency
CustomersSuppliersSuppliers
B2BB2B B2CB2C
OTD Drives a Transformation Across All Business Processes
OTD Drives a Transformation Across All Business Processes
DealersDealers
Rapid Customer Fulfillment
Organizational TransformationOrganizational TransformationEliminate Silos and Create Common, Integrated Solutions
Across the Supply Chain
RailInterchanges
PlantsConsolidation
Centers and PortsVehicle and Parts
Distribution Centers Dealers
Suppliers
Supply Chain Visibility and Management
Customers
One Integrated Cross-functional Customer Focused Organization
Supply OperationsSupply Operations Order FulfillmentOrder FulfillmentLogisticsLogistics
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OTD CommonProcesses and SystemsOTD CommonProcesses and Systems• Supply Operations• Order Fulfillment• Logistics
• Supply Operations• Order Fulfillment• Logistics
Global OTD OrganizationGlobal OTD Organization
NorthAmericaNorth
America EuropeEurope
Latin America,Africa &
Middle East
Latin America,Africa &
Middle EastAsia
PacificAsia
Pacific
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Business Process & IT TransformationBusiness Process & IT TransformationConstraint Elimination Online Simultaneous Multi Tier Supplier Scheduling
Order Lead Time Reduction ProcessCustomer Demand Sensing
New Model Part Planning ToolOnline Distribution/Consensus Process
Order to DeliveryOrder to DeliveryCustomersSuppliersSuppliers
Real Time Supplier PerformanceMonitoring / MetricsReal Time Order Prioritization
Accessorization
Online CustomerLead Management
Online Vehicle Configurator
Online Dealer & Vehicle Locator
Supplier CapacityManagement Tool
Online Supplier InformationVisibility - SupplyPower
Total Cost Sourcing Tool
Real Time Outbound Distribution Visibility Vector 4PL Business Model Implantation
Product Delivery Date Commitments Outbound Logistics Network Redesign
OTD Cross-Functional Operating Organization Structure Inbound Logistics Network Redesign
Daily Order Scheduling & Sequencing WIP Inventory Management Improvement Tools
Assembly Plant Rapid OTD Enablers
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Business Results So FarBusiness Results So FarOrder Fulfillment Lead Time Reduced by 50%Parts Delivered on Time to Assembly LineStation: 99.8%Outbound Vehicle Shipped Damage Free: 99.5%Delivery Reliability: 85% Production and Material Constraints Reduced: 70%Inventory Costs Reduced by 16%Logistics Cost Reduced by 7.1%Headcount Reduced by 10%
Order Fulfillment Lead Time Reduced by 50%Parts Delivered on Time to Assembly LineStation: 99.8%Outbound Vehicle Shipped Damage Free: 99.5%Delivery Reliability: 85% Production and Material Constraints Reduced: 70%Inventory Costs Reduced by 16%Logistics Cost Reduced by 7.1%Headcount Reduced by 10%
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Conclusions:Conclusions:
Customers Will Continue to Be Increasingly More DemandingProduct and Business Strategy Competition Will Continue to IntensifyTo Win: GM is on a Journey of Significant ChangeEffective Supply Chain Management (OTD) Will Continue to Be an Increasingly Important Differentiator
Customers Will Continue to Be Increasingly More DemandingProduct and Business Strategy Competition Will Continue to IntensifyTo Win: GM is on a Journey of Significant ChangeEffective Supply Chain Management (OTD) Will Continue to Be an Increasingly Important Differentiator
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