Introduction
The automotive industry segment within the economy of the United States is a fundamental employer as well as a key donor of the American Gross National Product. The automotive industry segment is one that faces intense and comprehensive competition not only locally but also internationally. In recent times, the automotive industry has experienced deterioration in the revenues and profits generated and a decline in the market share as well as a lack of major employment opportunities. Within this similar timespan, the automotive industry has experienced major problems owing to the increases in the level of importation of vehicles and their corresponding parts from Europe and Asia as they have attained a greater market share as well as sales volumes. The purpose of this report to is to examine the different strategies and tactics employed by General Motors and Toyota Motor Corporation. These two companies are some of the biggest automotive companies within the United States. Specifically, the report will examine the corporations’ supply chain management, inventory management, quality control, project management, and lean operations.
Background of the Companies
General Motors is one of the biggest automotive companies not only in the United States but also across the world. The company’s international center of operations is situated in the state of Detroit. General Motors conducts its manufacturing processes and has facilities situated in 33 nations across the globe. Notably, the locations of General Motors’ are strategically situated and play a pivotal part on where to position facilities for production as well as design. The company manufactures key vehicle brands such as Cadillac, GMC, Saturn, Buick, Saab, Pontiac, as well as Chevrolet. Statistics indicate that General Motors was able to manufacture and retail 8.4 million cars and trucks worldwide. The company’s operations encompass designing, manufacturing as well as marketing of passenger vehicles, trucks, and locomotives. What is more, the company also undertakes the manufacturing of associated vehicle parts and accessories (General Motors, 2018).
From its establishment, Toyota has been in the quest for contributing to a more successful society by means of the manufacturing of automobiles, conducting its business with an emphasis on the production and sales of vehicles. The founding of Toyota begun in 1933 with the corporation being a department of Toyoda Automatic Loom Works committed to the manufacturing of vehicles under the guidance of Kiichiro Toyoda, the founder of the head company. A year later, the department manufactured its very first Type A Engine that was employed in the initial Model A1 passenger car and G1 truck. Three years later in 1937, Toyota Motor Corporation was instated as an autonomous and distinct company. Since then, the company has developed to be one of the biggest automotive companies in the world. The center of operations is situated in Aichi in Japan. In the contemporary, the company employs more than 360,000 personnel and reported sales of 2,129,383 in the 2017 financial year (Toyota Global, 2018).
Supply Chain Management
General Motors
The supply chain of General Motors encompasses more than 21,000 businesses all over the globe and the company spends just about $90 billion, which is almost over 60 percent of the automotive expenses on approximately 200,000 product items. This signifies an assortment of raw materials, supplies, transportation and freight and is rendered to more than 30 nations (General Motors, 2018). Supply chains founded on strong, apparent and trustworthy affiliations are pivotal to making certain that consumers accomplish product quality, accessibility and affordability. Imperatively, these affiliations are pivotal to enhancing General Motors’ business competitiveness and diminishing the business risks being faced. In addition, this positions General Motors as a consumer of choice, facilitating the company in the transformation of transportation by working in tandem with suppliers to attain solutions for the problems faced within the automotive industry (General Motors, 2018).
What is more, the company makes certain that the supply chain is constructed on accountability and integrity values. General Motors endeavors to make certain that the suppliers within its supply chain acknowledge and share these philosophies (General Motors, 2018). Internationally, the company conducts several workspaces together with training to augment supplier operations, fundamentally in terms of efficacy, environmental management, workplace situations, and ethics and also the rights and freedoms of persons. In addition, General Motors assimilates localization in its supply chain management. The company builds plants where it sells them and also purchases them where the company builds in order to make the vehicles more competitive owing to price benefits and also can be constructed to satisfy distinctive local necessities that impel consumer interest...
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