PI Window on Business Welcomes Author and Distinguished Supply Chain Expert Bill Michels to Discuss GM’s Hard Learned Lessons

Posted on July 24, 2009

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In my July 10th post titled “Today’s PI Window on Business Show on Contracting Challenges Drives Home The Lessons That GM Has Learned The Hard Way,” I had made several references to the observations expressed by ADR North America’s CEO Bill Michels.

The “wreck” that is now the GM supply network, according to Michels was due in large part to the former industry giant’s “drive on price reduction, low cost country (LCC) sourcing, and extension of terms.”   A result Michels contends falls squarely on the shoulders of GM’s former VP of Procurement and Supply Chain, Bo Andersson whose “hard line approach might have been a short term win for GM, but resulted in long term supply chain problems and risk.”  Andersson it should be noted, was let go and replaced with Bob Socia.

Some would of course argue that Andersson became the fall guy for inheriting a mindset that existed long before his assuming the reigns of the GM supply chain practice.  While there may be some elements of truth to support that position,  it is safe to say that during his tenure Andersson did little to change either the direction or mindset associated with what Michels’ referred to as “the view that suppliers are a source of incremental profitability rather than an extension of manufacturing capability.”  This as Michels puts it, “is a gross miscalculation.”

I will let you watch the excerpt of Andersson’s speech at the 1st China International Auto Parts Expo in 2007 and leave it up to you to decide the extent of Andersson’s role in the precipitous collapse of the GM supply base.

In the meantime I am excited to announce that Bill Michels will be joining me as a guest in August (Tuesday the 11th is the scheduled broadcast date) on the PI Window on Business Show, to discuss the GM situation as well as its broader implications in terms of emerging supply chain practices.

Bill Michels CEO Adr North America LLC

Bill Michels CEO ADR North America LLC

This will be a segment that you will definitely want to mark on your calendar.

In the meantime, I would like to invite you to view an advanced “screening” of the newest PI Social Media Network video which introduces our new PI Window on Business Segment Sponsor Program.

The video titled “Connect With Your Target Audience” will be widely distributed throughout the Internet later today, with a Cable TV version scheduled for release later next week.

As with all that we do, your opinions and feedback is not only encouraged but welcomed.