Chapter 10. Managing Change in the Supply Chain: Lessons from General Motors
Rick Calabra at GM Revisited
Rick Calabra had spent some time with Mountainview, one of GM's key suppliers of electronic components. Michael Mitchell, Mountainview's General Manager, described some current supply chain issues that his company needs to resolve with GM. Mountainview has increased its business with GM from $50 million in 1996, to $90 million in 2000, and is projected to reach $140 million by 2006. Of this amount in 2005, close to $60 million will be a directed source, which is a significant increase in the proportion of models. “Directed source” means that Mountainview will be supplying a first-tier supplier (such as an interior module assembler) that ...
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