Gm Case Study

UPS Supply Chain Solutions

SM

case study

GM Accelerates Warranty Parts Recovery with Specialized Logistics

General Motors, the world’s largest vehicle manufacturer, drives its business results by rolling out innovative vehicles with high performance standards. To increase business performance, GM called on UPS Supply Chain Solutions to deliver an innovative solution for its materials recovery of parts under warranty — a key factor in reducing costs and boosting customer satisfaction.

General Motors

R E S U LT S United States and Canada

GEOGRAPHIC AREA SERVED CHALLENGE SOLUTION

Automotive

Client Challenge

In the highly competitive automotive industry, GM continuously seeks to enhance its products and customer service. The automaker was one of the first major companies to recognize the need to fuel improvements by revving up the reverse logistics of materials recovery. GM engineers closely monitor the trends of warranty parts repairs in order to make crucial decisions about parts requiring analysis. The logistics are challenging — GM receives parts from approximately 9,000 dealers in the United States and Canada as well as additional parts from other countries. Previously, GM dealers had to package the parts, address them to the designated supplier at one of more than 200 locations, take them to a post office and pay the shipping costs up-front. This process required GM to repeatedly call the dealers to determine if they had shipped the parts, and then contact the suppliers to verify the parts had been received. “We wanted a more responsive process with flexibility and accountability built in,” said Gary Smits, GM Manager of the Warranty Parts Center. “UPS Supply Chain Solutions helped us simplify the process and speed it up. The quicker we can get a part back, the quicker we can fix the problem. Customer satisfaction is our primary focus.”

Build ease and accountability into the supply chain for GM warranty parts, and boost efficiency in...