Chrysler Leverages Its Suppliers' Improvement Suggestions | Zendy

Janet L. Hartley | Zendy; Bertie M. Greer | Zendy; Seungwook Park | Zendy

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Chrysler Leverages Its Suppliers' Improvement Suggestions

Author(s) -

Janet L. Hartley,

Bertie M. Greer,

Seungwook Park

Publication year - 2002

Publication title -

informs journal on applied analytics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.662

H-Index - 64

eISSN - 1526-551X

pISSN - 0092-2102

DOI - 10.1287/inte.32.4.20.46

Subject(s) - champion , business , process (computing) , supply chain , supplier relationship management , operations management , marketing , process management , industrial organization , engineering , supply chain management , computer science , political science , law , operating system

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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