Mitigating Manufacturing Costs: How General Motors Saved $21 Million

In cost management, manufacturer, manufacturing, mfg by Generis0 Comments

GMThere are a number of options that manufacturers can explore when looking to reduce their manufacturing costs; material management, supplier negotiation, workforce optimization, process overhaul, inventory carry over and energy consumption are all factors that can be considered.

Energy spend, however, accounts for a large portion of manufacturing costs and provides a unique opportunity for cost reduction.  To effectively manage energy spend, manufacturers must first acquire insights into the three cost drivers of energy consumption and identify areas for  effective change.  How energy is purchased, how energy is used and when energy is used will greatly affect the overall cost of energy consumption.

One company that has effectively reduced their long term manufacturing costs through energy consumption management is General Motors.  With operations in 25 countries, GM is one of the world’s oldest and largest manufacturers of vehicles and vehicle parts.  Through their partnership with EnerNOC and the implementation of Energy Intelligence Software, General Motors has managed to save over $21 Million dollars in energy spend. The General Motors case study provides some interesting insights into the long term efficacy of implementing Energy Intelligence Software as well as the steps that are taken to achieve these savings.

For details, check out the General Motors Case Study.



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