Chrysler Leverages Its Suppliers' Improvement Suggestions

Janet L. Hartley (), Bertie M. Greer () and Seungwook Park ()
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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

Interfaces, 2002, vol. 32, issue 4, 20-27

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.

Keywords: Industries: transportation; Organizational studies: effectiveness; performance (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (5)

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