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Discussion - GM OTD Case

Discussion - GM OTD Case - Case Solution GM OTD Case Supply...

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This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Case Solution: GM OTD Case Supply Power is a good foundation for the OTD initiative to work from, but a significant number of challenges exist to realize the goal of complete visibility of requirements to suppliers up the supply chain. These include the following: Sales – must be able to build to order on a real-time basis, using information to replace inventory. A critical capability is the Available to Promise function, which will allow GM to make customer promises to dealers and end customers. Currently, GM promises delivery is 6-8 weeks, but makes no firm order commitments. Uncertainty – Demand shaping is a capability that must be built into the order taking process. For example, by identifying customers who are one year from the end of their lease, GM can sell them a vehicle before delivery, and thereby have a better understanding of actual order requirements well before they occur. Similar efforts can occur throughout the supply chain to enable strategic part buffers via better information management throughout the chain.
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