Strategic Supply Chain Management - Supply Chain Online

GENERAL MOTORS PROFILE: Driving Customer Satisfaction 227
CREATING VALUE IN LOGISTICS
SPO faced a significant gap in the competitiveness of its warehousing
and logistics operations. The management team is addressing
the challenge in partnership with a third-party logistics provider,
systematically implementing principles of lean manufacturing. Over
time, this consistent focus has enabled SPO’s people to “lean out”
material flows one at a time, implementing standardized work
processes along the way. Says Mishler, “We have improved our
productivity [in the distribution centers] by over 50 percent.”
CREATING A BALANCED PARTNERSHIP WITH SUPPLIERS
SPO acknowledges that much of its improved supply chain performance
has been due to its improved relationships with its suppliers,
including its logistics providers. In conjunction with other GM organizations,
it has implemented a rigorous process of supplier collaboration,
whereby performance is reviewed and ideas for reducing
waste in the supply chain are exchanged on a quarterly basis.
EMPOWERING THE “OAKS”
People also play a powerful role. As Mishler explains, they’re the
“oaks” that hold up the organization. The SPO is now organized
around business lines, reinforcing the focus on customers in each
brand/product business. Each business line is supported by a crossfunctional
team that is held accountable for supply chain performance.
The teams include “oaks” from key functions—people who
know the processes and have been around the business for years
and are continuously trained in skills that will help them eventually
optimize each of their supply chains.
Future plans include an aggressive “digital supply chain” initiative
that will incorporate virtual warehousing, enhanced supplier
collaboration, event management, advanced planning/optimization,
and other new capabilities. “It’s really a journey,” says Mishler.
“Once you get the entire organization focused on what is really
important, you can really make progress.”