Car giant might outsource RFQs

Supply Management, Oct 2, 2008 by Snell, Paul

[Manufacturing]

General Motors (GM) is considering outsourcing its RFQ processing in its North American purchasing function.

A request for information sent to suppliers, and seen by SM, said the firm was studying the possibility of hiring an outsourcer to support the buying staff in its Indirect Material/Services, Machinery & Equipment Purchasing organisation.

The scale would cover about 8,000 RFQs worth between $20,000 and $250,000 (£10,781-£134,764), dealing with suppliers located in the US, Canada and Mexico.

Activities that would be handled by a third party may include dealing with questions from vendors, following up with suppliers to make sure bids are submitted on time and informing successful tenders.

A spokeswoman for GM said: "We are studying the feasibility of using outside services on a limited basis to support buyers in RFQ processing. No decision has been made regarding the implementation of this proposal. A lot of work remains to be done relative to this study."

A potential benefit, she added, would be allowing buyers to focus on more strategic, less administrative work. GM is attempting to become more competitive globally and so it was exploring ways it could become more efficient.

Paul Snell

paul.snell@supplymanagement.com