Essay about General Motors Value Chain

Words: 3806
Pages: 16

According to (2009) General Motors Corp. (NYSE: GM), is one of the world's largest automakers which was founded in 1908, in Detroit USA. It manufactures cars and trucks in 34 countries. GM employs 252,000 people in every major region of the world, and sells and services vehicles in some 140 countries. It sells cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. Its largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.

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Inbound logistics deals with raw materials while outbound logistics typically deals with finished goods. In GM, outbound logistics has more options and is far more complicated than inbound logistics owing to the higher product values and stringent customer delivery requirements. . (Netmba, 2010).
Network design, planning and management are the first issues facing logistics managers on the outbound side In General Motors (USA) trade-off decisions are made regarding to the GM market, customers, product and logistical resources. The GM (US) logistical managers console an array of options including direct shipping or hub and spoke. They are responsible in practicing tends to favored fewer shipments, less handling, shorter movements, more direct routes, and better space utilization. Their decisions in outbound logistics include stock levels and stock points, centralized versus decentralized distribution centre’s, different service policies for different customers and different items, back order management, and replenishment policies, their logistics are willing to trade in time for transport savings (using a slower but more environmentally responsible carrier) and trade information systems investment for logistics costs (using advanced information systems to manage logistics systems better). With improved distribution technologies and extensive logistics networks, GM understands all the dynamics in inventory decisions and use innovative methods to solve