Gm545

OVERVIEW The global automobile industry has become increasingly agonistic and the previously dominant Big Three manufacturers of crossway, General Motors (GM) and Daimler Chrysler contract lost much of their market sh atomic number 18 to their Japanese competitors. Manufacturers continually have to look toward lowering their costs and GM and Ford largely go ab pop out doing this through their purchasing practices, more(prenominal) specifically, their supply chain management. In this paper, we shall discuss our findings on the dissimilar practices of Ford and GM (the carmakers) on how they get the most out of suppliers in terms of price, quality, timeliness and other expectations. We will foster discuss the implications of their current strategies, short term future plans and supplier relations before deciding on whether Ford or GM would potentially make a better workings partner for suppliers. CARMAKERS AND SUPPLIERS The automobile industry has seen a great suspension in the way business is conducted over the past some decades. Gone are the long time where the manufacture and assembly of separate and the sales functions were all done in-ho drill. Today, Ford and GM are highly dependant on external parties to supply them singular parts and sub-assemblies (suppliers) and take care of their sales functions (dealers).

The carmakers challenge these days is to coordinate and manage the complex supply chain profit where the quality of the partners they work with would determine the carmakers ultimate performance. To manage these gigantic networks, Ford and GM have turned to the internet as a solution. In 2000, Ford and GM were part of an scuttle that set up Covisint , an online portal where OEMs and their suppliers could interact under a common infrastructure and carry out their business transactions. The use of such portals meant that OEMs and registered suppliers could easily have access to each others selective information in the form of online catalogs, real-time inventory levels, contract process auctions and...

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