Preview

IGNACIO LOPEZ - GENERAL MOTORS

Powerful Essays
Open Document
Open Document
2001 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
IGNACIO LOPEZ - GENERAL MOTORS
GHANA INSTITUTE OF MANAGEMENT & PUBLIC ADMINISTRATION (GIMPA)
SEPTEMBER 2012 YEAR GROUP- EVENING MBA

MARKETING OPTION

COURSE TITLE: SUPPLY CHAIN MANAGEMENT

NAME: KUMAH SUE EYRAM

STUDENT ID: 213004003

MID SEMESTER CASE ANALYSIS – JOSE IGNACIO LOPEZ DE ANRIORTUA

DUE DATE: 4TH DECEMBER, 2014

OVERVIEW
“Modern manufacturers work with a wide range of suppliers, and supply chains are becoming increasingly complicated. The growing need to cut prices for the consumer means margins are being squeezed like never before.” (Davies, 2014) Well executed supplier relationship management practices can turn the fortunes of a business around. The benefits of this practice are reduced costs, increased efficiency and continual improvement of operations.
This concept was well understood and implemented by Spanish native J. Ignacio Lopez De Arriortua who joined GM Espana as manager of engineering and rose through the ranks to become head of purchasing for GM Europe. The case highlights his unprecedented achievements, his flaws and the huge legal battle his subsequent defection to VW caused. This case has both supply chain, ethical and legal dimensions. The supply chain issues border on lean production, the modular consortium concept and many more. The legal issues this case bring up are those of intellectual property and industrial espionage. “Jose Ignacio Lopez de Arriortua was known as the "Grand Inquisitor" and "Super Lopez" during his tenure at General Motors, a wizard of cost reduction and streamlined production” (Vettraino, 2008). He is one of the most respected individuals in the automobile industry .Under the leadership of Jack Smith, the Chairman of General Motors, Lopez revolutionized GM in the area of cost-control. He is noted for striking hard bargains with suppliers and will push till he attained the double digit percentage decreases he sought after. “Lopez is credited with saving GM roughly $3.0-4.0 billion as a result of these tough supplier management


References: Retrieved from http://catarina.udlap.mx/u_dl_a/tales/documentos/bce/knief_ag/capitulo2.pdfp. 4 Dyer Jeff; (2002) Case study; Supplier management dilemma at GM1; Marriott School at Brigham Young University English, Paul F. (2011) Safety Performance in a Lean Environment: A Guide to Building Safety into a Process; CRC Press Ettlie, John E; (1998 December) Jarillo, J.C.; Strategic networks; Butterworth & Heinemann. Oxford, 1993. Meredith Robyn; (1997, January 10) VW agrees to pay G.M Moffett, M. & Youngdahl, W. (1999) Jose ' Ignacio Lopez De Arriortua; Retrieved from http://www.allfreepapers.com/print/Jose-Ignacio-Lopez-De-Arriortua/2466.html Treece, James B; (1992, September 8) Business Week Vettraino, J. P; (2008, December 30). Where are they now? Shadow figures. Autoweek. Retrieved from http://autoweek.com/article/car-news/where-are-they-now-shadow-figures#sthash.6ZG9dCfH.dpuf
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    MKT 411 Final Exam Review
    • 5846 Words
    • 24 Pages

    MKT 411 Final Exam Review

    Supply Chain Management – the art of managing the flow of materials, products and information from source to end-user. Managing relationships to deliver superior value at less cost…

    • 5846 Words
    • 24 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    What Are the Risks of an Extended Supply Chain?
    • 466 Words
    • 2 Pages

    What Are the Risks of an Extended Supply Chain?

    In order to remain competitive, a company must offer superior quality goods or services at the lowest prices possible. Supply chain enables a company to reduce the cost while increasing the efficiency. However, there are risks that are associated with such benefits. These issues should be properly addressed when a company is trying to rely heavily on supply chain management in order to stay competitive within its industry.…

    • 466 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    MBA6127 Unit 6 Discussion 2
    • 1790 Words
    • 6 Pages

    MBA6127 Unit 6 Discussion 2

    The need for change was made clear to the GM Company, as customers were more perceptive, powerful and demanding. However, GM’s responsiveness lagged the industry. Furthermore, dealers grew more frustrated by the mix of their inventory. Dealer’s lots were becoming clogged with inventory and in order to clear out the old, GM had to offer sales incentives, squeezing profit margins. Dealers were struggling to get vehicles they wanted as well as vehicles their customers wanted. In addition, special order vehicles had extremely long lead times due to delivery dates were not tracked. The company’s supply chain costs were growing, with high levels of raw materials and work-in-progress inventory, inefficiency, outdated technology, bloated overhead, it was critical for the GM Company to make a change (Cohen & Shoshanah, 2005).…

    • 1790 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Res 320
    • 926 Words
    • 3 Pages

    Res 320

    In today’s global market that is changing rapidly companies need to keep up with demand and market strategies to stay competitive. Businesses need to develop a process that allows them to operate at lower costs, and develop its own identity to distinguish it from other competitors. Supply Chain Management (SCM) has become an intricate part of the company operations allowing them to rethink how to reorganize their operation so they can focus on the core competencies of the company. SCM focus is to improve the way a company uses its resources such as raw materials and how it is delivered to its customers. Any product offered by a company, there are normally a number of business partners involved in the supply chain, including the manufacturers, wholesalers, distributors and retailers and the most important partner in this…

    • 926 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Current Ethical Issues in Managerial Accounting
    • 928 Words
    • 4 Pages

    Current Ethical Issues in Managerial Accounting

    No company can nowadays afford to function alone. Partnerships are increasingly getting important and the effective exchange of information can determine profit or loss. An important method to cope with the increasing complexity is called supply chain management (SCM). It is enterprise-wide planning, management and control of all logistics tasks in the value chain.…

    • 928 Words
    • 4 Pages
    Better Essays
    Read More
  • Best Essays

    Riordan's Plan
    • 1371 Words
    • 6 Pages

    Riordan's Plan

    Supply Chain Management is about the delivery of a product to a customer in a timely manner regardless of its location of the globe. Providing the right component, the correct quantity ordered, and at the right price is what customers value the most. To enhance customer value and satisfaction a customer relationship integration team should exist and bring together each facility, its services, and its employees into the CRM process. Integrating the available information of an organization allows employees to have immediate access that may be crucial to a customer’s delivery. Customers value the open visibility of their supplier to track any material that has been shipped.…

    • 1371 Words
    • 6 Pages
    Best Essays
    Read More
  • Good Essays

    Supplier Relationship Management
    • 707 Words
    • 3 Pages

    Supplier Relationship Management

    Supplier relationship management is an approach to managing organizations interactions with the supplier of the goods and services it uses. The main goal of supplier relation management is to streamline and make more effective the processes between an organization and its suppliers. In order for this type of relationship to work and benefit both parties, the organization and its suppliers must have the same desired outcomes. Both parties must be willing to compromise, share information such as pricing, new product developments, and as well, be able to communicate openly and honestly with one another and the cross-functional teams. Whirlpool Corporation and Inland Steel Industries demonstrate these qualities, thus the reason for their great success in their respective industries.…

    • 707 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Operations Management
    • 2215 Words
    • 9 Pages

    Operations Management

    Supply chain management is the coordination of the processes and functions within a business, adopted by most companies in the UK in the late 1990’s. It deals with the internal and external factors that, when dealt with correctly and systematically, can determine a businesses success or failure. A supply chain is the network of activities that delivers a finished product service to the customer. By definition, supply chain management (SCM) is “the management of the flows of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to the customers” (Reid & Sanders). SCM entails the co-ordination of the movement of good through the supply chain from suppliers to manufacturers to distributors to the final customer. The main aim of SCM is to maximise the efficiency of any given process being carried out by a company; by doing this it is allowing them to try to cut their costs and hopefully keep satisfying their customers’ needs, while at the same time maintaining their competitive position within their market. Supply chain management is seen as more of an “open system” in contrast to the traditional system used by the majority of companies just 20 years ago. The new “open system” allows room for change which is greatly needed with the current financial instability of the economy.…

    • 2215 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    General Motors
    • 2359 Words
    • 10 Pages

    General Motors

    Despite the large scale operations of the company, GM has multiple areas of concern that need to be addressed in order to sustain long term value for both stakeholders and shareholders. Preliminary results of this analysis indicate that GM suffered enormous financial losses as a result of poor product quality, lack of consumer appeal, lag in alternative fuel technologies, inefficient plant production, and a saturation of similar car models amongst their brands. Due to these factors, consumer perception has plagued the company‘s sales, resulting in a steady decrease in market share across all platforms (www.gm.com).…

    • 2359 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Better Essays

    Part 2 Supply Issues Case
    • 1912 Words
    • 6 Pages

    Part 2 Supply Issues Case

    References: Joel D. Wisner, K.-C. T. (2012). Principles of Supply Chain Management. Mason, OH: South-Western Cengage Learning.…

    • 1912 Words
    • 6 Pages
    Better Essays
    Read More
  • Best Essays

    The Ford Motor Company Supply Chain Management
    • 4990 Words
    • 20 Pages

    The Ford Motor Company Supply Chain Management

    References: 1. Accenture Consulting Company. (2001) Ford Business Challenge, United States, October 1994. Accenture Consulting: Author 2. Banham, R. (2001, July). Road Testing The Ford Supply Chain. Supply and Demand Chain Executive, 1-7. 3. Bosman, R. (2006). Risks Associated with Supply Chain Management. FM Global, 310. 4. Lamothe, R. (2001) Supply Chain Reaction: Logistics Outsourcing Firms Make Their Beachheads in Mexico. Business Mexico Magazine. 1-8 5. No Author. (2007, February) Supply Chain Management. Retrieved from www.nsf.gov/about/history/nsf0050/manufacturing/supply.htm 6. 7. No Author. (2007) Ford. Retrieved on March 25, 2007 from http://www.ford.com No Author. (2003, June). Ford Takes New View on Direct Material Procurement Management. Supply Chain Systems Magazine, 1-2. 8. Peter, J. (2004, October). Ford’s Supplier Parks is a Model for Future Supply Chain Operations in North America. Retrieved March 25, 2007 from http://findarticles.com/p/articles/mi_m3012/is_10_184/ai_n6261228/print 9. Speizer, I. (2006, March 27). Ford: The Right Way Forward? Workforce Management, 1, 24-30.…

    • 4990 Words
    • 20 Pages
    Best Essays
    Read More
  • Powerful Essays

    Course 3 Case Work - How Kimberly-Clark Keeps Client Costco in Diapers
    • 2070 Words
    • 9 Pages

    Course 3 Case Work - How Kimberly-Clark Keeps Client Costco in Diapers

    Retailer-supplier partnership (RSP) will lead us to know that suppliers have a greater knowledge of their lead times and production capacities than retailers, and as margins get tighter and customer satisfaction becomes even more important, it makes sense to create cooperative efforts between suppliers and retailers in order to leverage the knowledge of both parties, VMI is one of the best practices in this world, and also in SCOR (P1, P2, P4, S1.1, S2.1, S3.3, ES.7, D1, D1.5, D1.6, D2.5, D2.6, D3.5, D3.6) as the supplier takes responsibility for the operational management of the inventory within…

    • 2070 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    Jose Ignacio Lopez de Arriortua Case
    • 1695 Words
    • 7 Pages

    Jose Ignacio Lopez de Arriortua Case

    General Motors is one of the world's most dominant automakers from 1931. After 1980s economic recession the main goal for automobile companies was cost reduction. Customers became more price-sensitive. Also Japanese competitors came into market with the new effective system of production. So market was highly competitive and directed toward price reduction. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing was due to purchased components. GM NA hired Lopez in order to find the way from "extraordinary" situation and reduce costs.…

    • 1695 Words
    • 7 Pages
    Good Essays
    Read More
  • Better Essays

    General Motors
    • 1227 Words
    • 4 Pages

    General Motors

    General Motors is a well known American company that is responsible for the fabrication and production of vehicles under others subsidiaries or brands such as Buick, Chevrolet, Cadillac, GMC, Oldsmobile, and Pontiac. Besides of the American brands there are other brands working through joint ventures like Opel, Wuling, Vauxhall, Holden, and Faw Jiefang. It seems to be an interesting strategy of market power the diversity of vehicles and models oriented to satisfy the necessity of the consumers adding high quality and performance to the automobile’s technology. As part of the General Motor history it is necessary to mention some chronological data for this company. General Motors was founded in 1908 in Flint, Michigan by William Durant with he investment on the Buick company only. In Germany the Opel company was targeting and getting strength with sewing machines; years later this company was introduced to the automobile market to posteriori being part of the GM family (GM, 2014).…

    • 1227 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Barilla Case Study
    • 1044 Words
    • 3 Pages

    Barilla Case Study

    Creating a strong strategic alliance with the suppliers and buyers can help to produce a positive change in the performance of the supply chain. Using Vendor Management Inventory will help the supplier understand the demand in every level of the supply chain, and will help to produce the necessary amount of products, in turn lower inventory levels and help reduce the likely hood of being left out of stock on a product. A key factor of using the VMI work is the risk shared impact.…

    • 1044 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics