GM’s global logistics chief Edgard Pezzo explains how the OEM has invested in visibility, capacity and collaboration to protect its supply chain and production.
GM has stepped up in investment in visibility tools and processes across inbound logistics, manufacturing and vehicle distribution, including more use of technology such as GPS and telematics. The carmaker’s logistics and supply chain teams have also been readier to revaluate trade-offs between transport costs and inventory, for example, with the aim of keeping plants running and delivering vehicles. GM’s logistics organisation has also been willing to purchase more transport capacity in advance on key trade lanes to act as ‘insurance’, while increasing more direct delivery services for vehicle logistics.
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The production pauses come at an already challenging time for GM due to recent union negotiations.
The coronavirus pandemic meant 2020 was a tough year for everyone in the automotive sector. GM was no exception. While the carmaker’s sales for the calendar year reached 2.5m units, total deliveries were down 12% and retail deliveries down 6% for the year. However, toward the end of 2020 retail sales recovered to pre-pandemic levels. According to the carmaker’s executive vice-president, Steve Carlisle, that was down to the efforts made by GM’s workforce. They kept launches on track and each other safe.
General Motors has confirmed that it restarted production of the Corvette sports car in Kentucky on Monday after a week of shutdowns that resulted from parts shortages.
