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Chrysler Leverages Its Suppliers' Improvement Suggestions

Author

Listed:
  • Janet L. Hartley

    (Department of Management, Bowling Green State University, Bowling Green, Ohio 43403)

  • Bertie M. Greer

    (Department of Management and Marketing, Northern Kentucky University, Nunn Drive, Highland Heights, Kentucky 41099)

  • Seungwook Park

    (Department of Management, California State University–Fullerton, Fullerton, California 92834)

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.

Suggested Citation

  • Janet L. Hartley & Bertie M. Greer & Seungwook Park, 2002. "Chrysler Leverages Its Suppliers' Improvement Suggestions," Interfaces, INFORMS, vol. 32(4), pages 20-27, August.
    • Handle: RePEc:inm:orinte:v:32:y:2002:i:4:p:20-27
    DOI: 10.1287/inte.32.4.20.46
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    Cited by:

    1. Sanjay L. Ahire & John B. Jensen, 2017. "Snider Tire Optimizes Its Customers-Stores-Plants Transportation Network," Interfaces, INFORMS, vol. 47(2), pages 150-162, April.
    2. Jason Amaral & Corey A. Billington & Andy A. Tsay, 2006. "Safeguarding the Promise of Production Outsourcing," Interfaces, INFORMS, vol. 36(3), pages 220-233, June.
    3. Fakhrul Hasan & Mary Fiona Ross Bellenstedt & Mohammad Raijul Islam, 2023. "Demand and Supply Disruptions During the Covid-19 Crisis on Firm Productivity," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(1), pages 87-105, March.
    4. Wagner, Stephan M. & Eggert, Andreas & Lindemann, Eckhard, 2010. "Creating and appropriating value in collaborative relationships," Journal of Business Research, Elsevier, vol. 63(8), pages 840-848, August.
    5. Aamir Rashid & Rizwana Rasheed, 2023. "Mediation of Inventory Management in the Relationship Between Knowledge and Firm Performance," SAGE Open, , vol. 13(2), pages 21582440231, April.

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