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GM-General Motors de Mexico:Driving Efficiency

Summary

Penske Logistics has been a supplier to General Motors (GM) for more than 75 years. With a reach that extends to more than 60 countries, logistics is no small challenge for GM. GMM is GM’s Mexican subsidiary and a vital part of GM’s North American operations. GMM selected Penske to be its lead logistics provider (LLP) to help drive efficiency throughout all aspects of its distribution network. Within the first six months of our partnership, transportation costs had already been significantly reduced. And, more improvements were underway including the implementation of proprietary software to provide instant access to real-time updates from every supply chain participant.

Challenges   Solutions / Results
To reduce costs and inefficiencies in General Motors de Mexico’s (GMM) growing inbound transportation network.

To increase overall visibility throughout GMM supply chain.

To establish accountability procedures and measures for GMM suppliers and carriers.

 Within six months, Penske had reduced transportation costs by 15 percent.

Penske implemented its proprietary Logistics Management System software to provide instant access to real-time updates from every supply chain participant, enabling proactive resolution of supplier and carrier issues.

Penske reduced GMM carrier base from 100 carriers to 20 within the first year.  The rate of on-time supplier pickups has increased to 98 percent, while delivery rates are at 99 percent.




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