Chrysler's new executive vice president of procurement and supply says another down year of automotive sales could seriously impact Chrysler's supplier base and unveiled his strategies on how to minimize the impact of that trend on the automaker.
"If it's going to be a tough year next year, with the number of (suppliers) that are on the edge of Chapter 11, that's going to push them over the edge, no question," says Chrysler's newly appointed top buyer Simon Boag.
He says one way Chrysler is trying to help its suppliers is through more accurate parts forecasts, which will limit the amount of excess inventory parts makers are stuck with. In fact, Boag says Chrysler may pay its suppliers more for some parts than it previously did to help keep some from filing bankruptcy.
At the same time, Chrysler is striving to continue to grow its supplier diversity efforts with its struggling supply base.
Source: Purchasing, http://www.purchasing.com