Gmbg Case Study

1218 Words Mar 29th, 2012 5 Pages
GMBG Case Study
Summary/Analysis: The GMBG case study looks at the “Blue Macaw” Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to order system and has all of its suppliers housed at the GMBG plant working together to produce the vehicles. The case study highlights the history of the Brazilian automotive industry, the GMBG plant itself, the production strategy/manufacturing process as well as the distribution strategy of this revolutionary and profitable division of GM South America.
I thought that
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This can also help to lower costs associated with the supply chain because all suppliers are so close to the plant and do not have to mover parts across the country or world. It reduces lead times and ultimately allows GM to get a high quality product to the customer faster at a low price.
2. This type of auto purchasing system works very well for the GMBG plant in the Brazilian market, however, I believe that there would be a number of problems if this system were to be attempted in the U.S. In the U.S. we have a much more complex automotive market than in Brazil. U.S. customers for have much more purchasing power, and therefore, there is much more competition in the U.S. market. There are more options not only in the type of vehicle that you can buy, but also the company that you can buy it from. Another important factor is that Americans like the ability to choose from a wider range of colors, models, and features. In Brazil at the GMBG plant the system works so well because it is not as complex. There are 5 color choices and three models equaling 15 total combinations. The simplicity of the product is what makes it work so well. In the U.S. it would be difficult to implement the system in the same way with so many more models, colors, and features to choose from. This increase in the variation of the product would put severe strains on the supply chain. It would

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