Chrysler Leverages Its Suppliers' Improvement Suggestions

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Interfaces, Vol: 32, Issue: 4, Page: 20-27

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Hartley, Janet L.; Greer, Bertie M.; Park, Seungwood
Industries; transportation; Organizational studies; effectiveness; performance; Business; Operations and Supply Chain Management
article description
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 em ployees, 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.