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IGNACIO LOPEZ - GENERAL MOTORS

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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
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