Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems

Chapter 10. Managing Change in the Supply Chain: Lessons from General Motors

Rick Calabra at GM Revisited

Rick Calabra^[1] had spent some time with Mountainview, one of GM's key suppliers of electronic components.^[2] 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 ...