Chrysler leverages its suppliers' improvement suggestions

Chrysler leverages its suppliers' improvement suggestions

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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: , ,
Keywords: organization, performance
Abstract:

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.

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