Answer to Question #306840 in Management for Mazet

Question

Supply management must maintain a number of communication flows and linkages between other key groups within and external to the organisation. Explain GM`s supply management relationships with internal linkages, within the organisation as well as external that may have been important in avoiding the mistakes in supplier selection.(question from GM recalling 7 million vehicles for airbag promples after losing fight with safety regulator, subject suppy chain mamagement)

Answer 1

Supply chain linkages are the connections between the firm's internal and external supply processes.

The number of inputs from supplier to the company, and the other way around, is tracked and managed here. The three basic sorts of streams in this network are product flow, flow of money, as well as information flow. In this instance, both the items and the flow of payments between the firm as well as the supplier were handled effectively. GM compensated its supplier in return for the items. The problem emerged since Takata did neither provide or reveal correct information about their product, but neither the corporation nor the supplier sought or made the effort to collect such information. GMs, on the other hand, did not.

GM's did not perform any research or attempt to evaluate the product's quality. If the vendor as well as the company had cooperated together to strengthen information links and provide correct information, this incident may have been avoided.