GM: Let's see books, not bids - Supplier strategy cuts costs but requires trust

摘要

General Motors has launched a parts-buying program that forgoes conventional supplier bidding. Instead, GM inspects suppliers' factories and analyzes their internal cost data. Suppliers who agree to the procedure, dubbed the One Cost Model, get contracts for periods ranging up to the life of a vehicle. GM, in turn, doesn't seek bids from other vendors. GM will update its cost analysis each year to see whether the supplier can cut costs by more efficient production. In some cases, supplier contracts may skip annual price-downs - price cuts that typically range from 1 to 4 percent.