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Service Supply Chains Put to the Ultimate Stress Test in the Automotive Industry

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Across the United States, besides the U.S. team’s accomplishments in the World Cup competition, another dominant traditional and social media based news headline reflects of the incredible number of automobiles and trucks being subject to product recall.  The primary story focuses on General Motors, which after intense scrutiny from U.S. regulators and legislators regarding faulty ignition switches among multiple models, is recalling all sorts of models that are believed to have been exposed to a component design problem, faulty ignition or otherwise. Thus far in 2014, GM has announced 44 product recalls involving nearly 18 million previously sold vehicles. Today’s social and business media buzz blares that the vehicles been recalled thus far is more than the total number sold in the U.S. in 2013.  In a previous Supply Chain Matters commentary, we called attention to product recalls involving airbags supplied by Japan based Takata Corp. that were expected to […]


What Comes Around: A Rating of Automotive OEM’s from Suppliers

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A posting on Supply & Demand Chain Executive highlights the results of the 14th annual North American Automotive Tier 1 Supplier Working Relations Index, which is an industry study on the major U.S. and Japanese automotive OEM’s relationships with suppliers. This annual study focuses primarily on OEM’s Chrysler, Ford, General Motors, Nissan, Honda and Toyota which currently comprise upwards of 80 percent of U.S. vehicle sales. This ranking study is rather significant since it ranks purchasing top leadership, buyer behavior and transparency and other factors that lead to perceived positive supplier relationships. The article highlights that both Toyota and Honda’s efforts to improve supplier innovation and relationships have, once again, gained the upper hand. Both OEM’s are ranked first and second respectively with Honda rated as “most preferred” customer among all OEM’s rated. Honda’s increase was reported to come primarily to improvements in three foundational key areas: supplier relationship, supplier […]


Reminders of Tighter Information Linkages Among Product Management and the B2B Supply Chain

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On Sunday, this author flew to Nashville Tennessee to both attend and moderate a panel discussion at the annual Supply Chain World North America and Global Member Meeting 2014 conference sponsored by the Supply Chain Council. Supply Chain Matters will share highlights from that conference in an upcoming commentary. Flying provides the opportunity to catch-up on reading, and for this author, my prior unread issues of The Economist magazine. Two specific articles with a common theme captured my interest and I wanted to share such observations with you in this commentary. At the many industry conferences I get the opportunity to attend, I often hear supply chain leaders speak to accelerated clock-speed of product innovation, and how that can add additional challenges and potential havoc for the end-to-end supply chain, particularly when that supply chain is significantly outsourced. For a supply chain that is primarily supporting product innovation, a major […]


Product Recalls Among Two Automotive OEM’s- Which is the More Significant?

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General and business media has provided much amplification of the latest product recall troubles involving General Motors. In the past few weeks GM has recalled upwards of 6.3 million vehicles globally for quality issues related to faulty ignition switches, a sudden loss of electric power-steering assistance and other issues. The incidents have once again raised issues as to why certain automotive manufacturers allow quality conformance issues regarding products to fester until consumers experience the results of such non-conformance, or in some cases suffer personal injury or death. The GM crisis has been billed as the first test of the leadership of newly appointed CEO Mary Barra, who just happens to have a supply chain, product and operations management career background prior to assuming her new top leadership role.  Indeed this latest crisis might have been the legacy handed over from previous GM CEO’s. Given Ms. Barra’s background, Supply Chain Matters […]


General Motors Selects Mary Barra as New CEO

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A significant shoutout is in order regarding today’s announcement on the appointment of Mary Barra as the new CEO of General  Motors.  This appointment represents a milestone of the first senior female executive ever to lead a global automobile manufacturer, and the significance is not unnoticed. The appointment is part of a far-reaching re-organization of GM management and includes the announcement that current CEO Dan Akerson will exit the company next month due to personal reasons. Akerson  advanced his succession plan by several months after his wife was recently diagnosed with an advanced stage of cancer. Ms. Barra has spent her entire working career at GM. The daughter of a tool and die maker at the Pontiac division, she starting in 1980 as a co-op student and risen through the ranks in roles in manufacturing, engineering and other leadership positions. Her most senior roles include Vice President of Human Resources […]


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