APRESENTATION ON

STREAMLINING LOGISTICS AT
GENERAL MOTOR PRESENTED
PRESENTED BY-
Nikita
BY-
Nikita Agrawal
Agrawal
CORPORTION Rajni
Rajni Bagra
Bagra
Neha Choudhary
Neha Choudhary
Anurag
Anurag Pandey
Pandey
 SUMMAR
Y
Manufacturing bases in about 32 countries.

 Sold vehicles in about 200 countries.

World’s largest automaker came in 1908.

 Employed around 3,24,000 people all over the world.

 GM assembled car & implemented ‘Just In Time’ management for continuous

supply of raw material with TNT Logistics (3PI).

TNT introduced inbound logistic systems in which WAP, Track & Race and GPS
technology were used.

 It also restructured its transportation & this helped to avoid any shut-down in
next three years (2001-03).

 TNT (3rd Party Integration) received awards for best supplier.

 Penske & CNF were also the 3PI of GM for outsourcing.

 SUMMARY (CONTD…)

Made separate company. Vector SCM (4PL) to integrate all 3PLs into one
system.
OTD (Order to Delivery) concept was developed which helped in
developing a ‘build to order’ manufacturing machine.
 Problems in existing system.
 Vector SCM integrated back end function with the front end process
 It reduced total order cycle time to less than 50%.
 It helped in speeding up deliveries & resulting in better sales.
 Vector SCM beared logistic costs of GM.
 Finally, it helped GM to become a “Bricks and Clicks” organization.
 BRANDS

BUICK CADILLAC

PONTIAC

BRANDS CHEVROLET

OPEL
GMC

HUMMER
HOLDEN
 LOGISTICS MECHANISM

1. TNT (Thomas Nationwide Transport Logistic)

• It was already in a business relationship with GM in north America, Europe, Australia
& Asia. It was first Logistic provider.
• Introduced an efficient inbound logistic system which also included emergency plans
for contingency.
• Also restructured the transport system to fully utilized the time of transporter.
• This logistic system helped GM to avoid any shut down in three years (2001-03).

2. PENSKE
• Penske implemented a logistic system that provided real time updates from every
supplier and carrier.
• This enable proactive action on the inbound transportation network.

3. CNF
• It was a joint venture of GM to outsource its logistics.
4. VECTOR SCM
• It is 4th party logistic provider that was set to integrate all 3PL providers into one
system.
 TECHNOLOGY USED

1. WAP (Wireless Application Protocol

Technology).
• It cut the delay in production
schedule.
• It was used to monitor the line hall
routs from GM plants.
• Any delay created and alert in the
system which used a track and trace
mechanism.

2. GPS (Global Positioning System)

• It was used for hourly monitoring of
the transport movement.
 AWARDS

 TNT Logistics system helped GM to avoid any shut-down in the

three years 2001-03. As a result of this changes, TNT received-
 2002 Supplier Of the year Award.
 Certificate of Merit From GM.
 TNT was elected the best transportation company in Brazil in July
2001.
 Got Best Company of the Year in brazil’s automatic sector in
November 2001.
 Received ISO 9002 Certification in 2002.
 HURDLES FACED BY GM

 GM had around 12,000 suppliers and daily shipments of 180 million

LB of materials.
 It produced more than 35,000 vehicles daily basis.
 There was non co-ordination of the transport system, delivery of
vehicle delayed by 13 days.
 Due to fail of OTD concept, GM faced the slow information flow
between the various components of the supply chain.
 OVERCOME FROM HURDLES
Vector SCM which was a 4th party Logistic provider, essentially provided a
package of solution-
 Integrating the back-end functions with the front-end process.

 Reduced total order cycle time to less than 15% i.e. from60 days to 15-
20 days.
 Shipping time also came down from 13 day to 8 days, which helped to
speed up deliveries resulting in better sales for GM.
 It bearded the logistic cost of GM.
CONCLUSION ???
