Log In   |  Register Free Newsletter Subscription
Skip navigation
Zibb
Subscribe to Purchasing
RSS
Reprints/License
Print
Email

Chrysler purchasing seeks 25% cut in parts prices

Purchasing czar plans to meet with predecessor Stallkamp

By Tom Stundza -- Purchasing, 5/19/2008 1:05:00 PM

Chrysler’s new global sourcing initiative is centered around a 25% reduction in component costs over three years by its key suppliers, according to a presentation by John Campi, executive vice president and chief procurement officer, at a special Town Hall Meeting last week for Original Equipment Suppliers Association members.
In confirming the gist of the presentation, a Chrysler spokesman tells Automotive News that the automaker plans to make some significant changes in its manufacturing and purchasing operations to help suppliers hit the cost-reduction target. He says Chrysler will give suppliers 30 days' notice of its production schedule, rather than the one-week notice typical today; share more parts among nameplates; reduce late engineering changes, which drive up costs, and split savings with suppliers.
Chrysler's program is reminiscent of the SCORE (supplier cost reduction effort) program the company employed from 1989 through 1996. Campi, who

gained the CPO post earlier this year

, plans to meet with former Chrysler purchasing director Tom Stallkamp, who launched SCORE and used 12,000 supplier-submitted proposals to save the automaker an estimated $25 billion. SCORE was scrapped after Chrysler was acquired by Daimler-Benz.

RSS
Reprints/License
Print
Email
Talkback
Related Content
Reed Business Information Resource Center

Featured Company


Most Recent Resources

Advertisement
Sponsored Links
Advertisement

Chemical Purchasing Summit

NEWSLETTERS
Price & Supply Alert
The Midday Business Report
Electronics Distribution & Global Sourcing
IdeaFile
Supplier Web Locator
Purchasing Magazine Short Report



Please read our Privacy Policy

About Us   |   Advertising Info   |   Site Map   |   Contact Us   |   FREE Subscription   |   Affiliate Links   |   RSS
© 2009 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy
Please visit these other Reed Business sites