Decideware

CPO Agenda, 6 May reports that new Chrysler CPO, John Campi has stated his priority to rebuild relationships with key suppliers.

He believes Chrysler's first priority is to regain trust and engagement with the supply base.

He cited previous practices as a reason for the manufacturer's poor reputation among suppliers and characterized demands for price cuts, poor internal processes and broken promises as 'kneejerk'.

As to the new direction, Campi flagged his desire to emulate the practices of Japanese rivals, and Toyota in particular - hiring Sigmund Huber, previously general manager at their North American operations.

Other specific initiatives to improve supplier relations, include:

* Working collaboratively with suppliers to take costs out of the supply chain and share savings on a 50:50 basis

* A doubling of the supplier partnership council to 25 firms, with an improved role as the voice of suppliers and a shift in focus to solving problems

* Operations initiatives including reduced vehicle complexity, stabilizing production scheduling and fewer post-design changes - all helpful to reducing supplier costs, and

* Structural changes in rotating buyers and purchasing directors

Source: CPO Agenda, 6 May 2008