GM, CNF FORM JOINT VENTURE COMPANY
General Motors and CNF Inc., the supply chain management service provider, said Wednesday they've formed a joint venture company, Vector SCM, which will serve as the giant automakers' lead logistics service provider worldwide.
GM Global Logistics will continue to be accountable for all of GM's logistics activities, and responsible for core competencies, strategic management and benchmarking. GM will transition its logistics services and management to Vector SCM over a three years in North America.
“We have over 180 million pounds of material delivered to GM daily from 12,000 origins, and ship over 8 million vehicles a year,” said Harold R. Kutner, group vice president, GM worldwide purchasing and production control and logistics. “Vector SCM will build the management tools to fulfill our requirements, accelerating the speed and reliability necessary to satisfy the changing demands of our customers.'
GM is undergoing a company-wide effort to provide accurate and reliable on-time delivery of vehicles to customers and cut order cycle time from more than 60 days to an average of 15 to 20 days.
Vector SCM will leverage the supply chain engineering experience of CNF's operating companies: Con-Way Transportation Services, Emery Worldwide and Menlo Logistics. The joint venture will also use Web-based software technology developed by CNF.
Gary D. Kowalski is chief executive officer of Vector SCM. He was vice president of strategic development for Emery Worldwide. Prior to joining Emery in 1995, he worked for more than 15 years with GM at various leadership positions in international business, manufacturing, production control, purchasing, logistics and quality.
The new joint venture will be based in Novi, Mich., a Detroit suburb, and initially employs 75 people.