GM doubles supplier cost-savings goal. (Purchasing Strategy).(General Motors)(Brief Article)(Statistical Data Included)

Purchasing, December, 2001

General Motors will push suppliers for cost reductions in the 4-5% range next year, about double the level required in 2001. Efforts to reduce GM's $60 billion a year spend on purchased goods and services in North America are a primary strategy to be profitable next year even though car sales are expected to drop, sparking more price competition.

GM is installing a new chief purchasing officer, Bo I. Andersson, to achieve bigger cost-savings. He replaces Harold R. Kutner as vice president, worldwide purchasing, production control and logistics. Andersson plans to expand a program he began a year ago as the number-two buyer at GM to solicit and implement cost-savings suggestions from suppliers. Andersson created more than 100 teams of purchasing...

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