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the auto company needs to think about. Organizations need to understand whether production
1. What finished products are these components and subassemblies going into?
2. What is the revenue at risk and the total profit impact per day based on idling production?
Some automotive companies are better able to answer these questions than others. For example,
the tsunami of 2011, which triggered the meltdown at the Fukushima Daiichi Nuclear Power
Plant, was a wakeup call for General Motors (GM). GM learned that their business continuity
plans at the plants were too “tactical.”
Following the tsunami, GM learned it is not enough to appoint “the person who will call the fire
department.” You need to identify how an event will affect plants and respond quickly! “Most
business continuity plans fall short in their ability to support a quick response.” GM responded in
a traditional way to the catastrophe, “We circled the wagons and tried to figure out how to
respond.” But their response teams were not sufficiently cross-functional and the response took
too long. Companies that are slow to respond, are at a disadvantage in securing alternate sources
of supply.
One of the tactics GM uses to avert, or at least quickly mitigate significant risks, is to have Blind
Spot Workshops. At these workshops executives across the company are asked “What keeps you
up at night?” Based on these meetings, the 30 top risks are identified, and each risk is assigned
functional leaders. Every key functional area at GM – procurement, product development, etc. –
has embedded risk officers. Each of these top risks has a mitigation plan. And many of these
risks must contain detailed resumption planning in their contingency (kemungkinan) plans.
After the catastrophe (malapetaka) GM has invested in new analytic tools that help them analyze
the risks associated with suppliers and catastrophic events. They worked with Resilinc to develop
these tools. Resilinc is cloud provider of supply chain resilience solutions. Resilinc helped them
geocode supplier’s plants and logistics hubs across their multi-tier supply chain. What this allows
GM to do is to draw a circle around an event like an earthquake and answer the question “Which
of our suppliers are located within 100 miles of the epicenter? Within 200 miles?” GM can also
look at suppliers located within the flood plain of a river and ask question like “Are all of our
key suppliers of a particular component located in that flood zone? What happens if they all go
down all at once?”
LLamasoft executives point out that “it is a given that as auto parts start going on allocation,
being the first mover to lock in on the parts allocation will significantly reduce the risks.”
Once the impacts are understood, network design and supply chain planning tools are used to
understand how profitable alternative supply chains will be and what the ongoing service level
impacts will be.
General Motors uses LLamasoft as their network design solution. Indeed, when ARC has
attended LLamasoft’s user conferences, it became clear that GM is considered one of the most
sophisticated users of network design tools in the world.
Final Thought
The coronavirus continues to spread throughout China the human toll cannot be ignored. Nor
should it be. This epidemic will have adverse financial effects on most major companies in this
industry, including GM. The reliance upon buffer inventory can only last so long. As Mr. Gaurav
said at the end of our call, “Thank God for buffer inventory. If it gets depleted, it will create huge
demand-supply imbalance in the global landscape.” And, unfortunately, ramping up sourcing
from new locations will take time, perhaps months. But some companies, like GM, appear to
have better tools and better processes in place to deal with this crisis than others in the industry.
Sebagian besar komponen sumber tunggal OEM untuk kendaraan baru dan Cina adalah pemasok besar
dari itu. Dengan demikian, ada risiko yang terpapar. Industri otomotif telah melalui tren 'regionalisasi'
selama 5 hingga 8 tahun terakhir dengan hub utama muncul di Meksiko (untuk pasar Amerika Utara),
Eropa Timur (termasuk
Setelah tsunami, GM mengetahui bahwa tidak cukup untuk menunjuk "orang yang akan
memanggil pemadam kebakaran." Anda perlu mengidentifikasi bagaimana suatu peristiwa
akan mempengaruhi tanaman dan merespons dengan cepat! "Sebagian besar rencana
kesinambungan bisnis gagal dalam kemampuan mereka untuk mendukung respon cepat."
GM merespons dengan cara tradisional terhadap bencana itu, "Kami mengitari gerobak dan
mencoba mencari cara untuk merespons." Tetapi tim respon mereka tidak cukup fungsional
dan responnya terlalu lama. Perusahaan yang lambat merespons, tidak beruntung dalam
mendapatkan sumber pasokan alternatif.
Salah satu taktik yang digunakan GM untuk menghindari, atau setidaknya dengan cepat
mengurangi risiko yang signifikan, adalah dengan mengadakan Lokakarya Buta. Pada
lokakarya ini, para eksekutif di seluruh perusahaan ditanya, "Apa yang membuat Anda
terjaga di malam hari?" Berdasarkan pertemuan-pertemuan ini, 30 risiko teratas
diidentifikasi, dan setiap risiko ditetapkan sebagai pemimpin fungsional. Setiap area
fungsional utama di GM - pengadaan, pengembangan produk, dll - telah melekatkan petugas
risiko. Masing-masing risiko teratas ini memiliki rencana mitigasi. Dan banyak dari risiko
ini akan memiliki efek keuangan yang merugikan pada sebagian besar perusahaan besar di industri ini,
termasuk GM. Ketergantungan pada persediaan buffer hanya bisa bertahan lama. Seperti yang
dikatakan Mr. Gaurav di akhir panggilan kami, “Terima kasih Tuhan atas persediaan buffer. Jika habis, itu
akan menciptakan ketidakseimbangan pasokan-permintaan yang sangat besar di lanskap global. ” Dan,
sayangnya, meningkatkan sumber dari lokasi baru akan memakan waktu, mungkin berbulan-bulan.
Tetapi beberapa perusahaan, seperti GM, tampaknya memiliki alat yang lebih baik dan proses yang lebih
baik untuk mengatasi krisis ini daripada yang lain di industri.