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Chrysler Leverages Its Suppliers' Improvement Suggestions
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Chrysler Leverages Its Suppliers' Improvement Suggestions
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Chrysler Leverages Its Suppliers' Improvement Suggestions
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Journal Article
Chrysler Leverages Its Suppliers' Improvement Suggestions
2002
Overview
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.
