Article ID: | iaor2004269 |
Country: | United States |
Volume: | 32 |
Issue: | 4 |
Start Page Number: | 20 |
End Page Number: | 27 |
Publication Date: | Jul 2002 |
Journal: | Interfaces |
Authors: | Park Seungwook, Hartley Janet L., Greer Bertie M. |
Keywords: | organization, performance |
We examined Chrysler's SCORE (supplier cost reduction effort) supplier-suggestion process from the perspectives of Chrysler and its suppliers. Chrysler used SCORE to save over $2 billion and to build collaborative relationships with its suppliers. In our study, we observed four elements in Chrysler and its suppliers' organizations that contributed to SCORE's success: (1) designating a process champion, (2) engaging suppliers in the process, (3) motivating employees, and (4) facilitating evaluation and implementation. Companies designing a supplier-suggestion process should consider ways to reduce delays during evaluation, to minimize the number of low value suggestions, and to involve the entire supply chain.