Ivey Publishing

Product Details

General Motors: Supplier Selection for Innovation
Product Number:
9B17D006
Publication Date:
05/23/2017
Revised Date:
10/31/2019
Length:
6 pages (6 pages of text)
Product Type:
Case (Field)
Source:
Ivey
In February 2017, a purchasing manager for General Motors Company (GM) needed to come up with a sourcing proposal to source e-boost modules, which were required to support the enhanced 2020 Chevrolet Bolt Electric Vehicle and the new 2020 Chevrolet Bolt Autonomous Vehicle. GM had four possible international suppliers to choose from. Each supplier had its pros and cons in terms of price, product development capability, and the architectural nature of the braking system. GM wanted to be a disrupter to the autonomous vehicle industry. Its top priorities were public safety and defect-free quality. In order to continue to maintain the market leadership position, GM wanted to retain the intellectual property of the e-boost modules. Which supplier would best meet the needs of the company?
Learning Objective:
This case is suitable for courses in operations management or supply chain management, particularly in a section dealing with supplier selection and innovation. After working through the case and assignment questions, students will be able to do the following:
  • Examine the difference between traditional production outsourcing (i.e., North American manufacturer performs the product design; Asian supplier produces the component) and innovation outsourcing (i.e., the supplier designs and manufactures the component).
  • Highlight what a purchaser should consider when making an innovation sourcing decision.
  • Examine cultural differences, and determine how they will affect the outsourcing decisions.
  • Illustrate how the buyer–supplier relationship affects a manufacturer’s long-term strategic goal.
    Issues:
    Disciplines:
    International,  Operations Management
    Industries:
    Manufacturing
    Setting:
    United States, Large, 2017
    Intended Audience:
    Undergraduate/MBA
    Price:
    $5.30 CAD / $5.00 USD Printed Copy
    $4.50 CAD / $4.25 USD Permissions
    $4.50 CAD / $4.25 USD Digital Download
    Associated Materials
    Supplements: 7B17D006 (296 KB)
    Translations: Simplified Chinese (6 pages) , Spanish (7 pages)
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