GM is committed to forming and nurturing exemplary supplier partnerships built on integrity and shared values. Our global supply chain spans thousands of businesses.
In 2020 we spent approximately $72 billion, representing a wide variety of raw materials, parts, supplies, transportation and other goods and services. These are delivered or provided to our operations around the world.
Our supply chain is built on strong, transparent and trusted relationships, which are critical to ensuring product quality, availability and affordability for our customers. By seeking to be the partner of choice to suppliers, we are better positioned to:
- Put the customer at the center of everything we do.
- Develop transformative transportation solutions that help address industry, environmental and societal challenges.
- Accelerate innovation to bring the newest technologies and innovations to customers.
- Improve our business competitiveness.
- Mitigate business risks.
- Eliminate waste from value streams and deliver defect-free vehicles.
- Address human rights problems and sustainability challenges.
We firmly believe in the importance of collaborating with our supplier partners in order to achieve mutual success and improve our overall impact. By working with suppliers to reduce their own GHG emissions, we are able to reduce our overall carbon footprint.
Localization is an important tenet of our value chain. When we build where we sell, and buy where we build, our vehicles are more competitive. Localization adds value across the total enterprise, and vehicles can be built to suit unique local requirements that drive customer enthusiasm and brand loyalty.
Localization also lowers risks by increasing the flexibility of our supply chain to respond to disruptions caused by natural, political or other causes. Furthermore, when we work with local suppliers, we also support the local economies of communities where we operate and realize environmental benefits such as reduced shipping distances and the lower associated emissions. We work cross-functionally through our product development activities, sourcing activities and logistics planning to maximize the benefits of localization.
Supply Chain Governance
Our Vice President of Global Purchasing and Supply Chain is responsible for executing the objectives in our Priority Wheel. GPSC is continuing to advance how the company and our suppliers partner for mutual success and deliver greater value to our customers.
The GM Supplier Business Council consists of 20 suppliers who meet quarterly with our GPSC leadership team. In early 2020, GPSC established a Sustainability Subcouncil within the Supplier Business Council to enhance GPSC's sustainability strategy. The Subcouncil serves as a sounding board, communicating lessons learned and improving our sustainability programs and those of our suppliers. The group is made up of Supplier Council companies, non-Supplier Council companies who are recognized for their work in sustainability, and a team of cross-functional GM employees. We look to this Subcouncil as the voice of our greater supply base on topics of sustainability.
We also have a number of other forums for supplier engagement, including the following:
- GM Supplier Business Meetings are held regularly throughout the year and are globally webcast to our suppliers to gain input and consensus on GM-specific topics. GM Chairman and CEO Mary Barra addresses this group annually at one of these meetings. Suppliers who participate in this webcast represent approximately 85% of our annual purchases for parts and services.
- The Supplier Safety Council serves as a clearinghouse for supplier safety policies and best practices. This cross-functional Council facilitates the sharing of lessons learned and best practices across the supply base. Any GM supplier is welcome to access the Council’s database to learn safety practices that can be shared within their own operations and supply bases.
- GM SupplyPower is an internet portal used for sharing information and best practices with suppliers. We encourage suppliers to facilitate discussions with their employees on important information posted in SupplyPower, including policies, guidelines, standards and reports. In 2020, we created a new page on this portal that serves as a single source of information for GM's supply chain sustainability, including GPSC's sustainability vision and goals, webinars and symposia, and other resources to help suppliers strengthen their sustainability programs.
- Our Supplier of the Year program recognizes top performers. 116 suppliers from 15 countries were awarded in 2020, including 13 first-time winners. Additionally, four suppliers earned Innovation awards for outstanding advancements in technology, and four others earned Overdrive awards for exemplary culture change leadership.
- Suppliers are provided access to the same communication tools—AwareLine, Speak Up For Safety and others—that our own employees use to raise concerns.
- Across the globe, we hold various webinars and work with third parties to provide external training to improve supplier operations, primarily in the areas of environmental management, workplace conditions, sustainability, ethics and human rights.