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Chrysler paying suppliers more quickly

by David Zatz on

Automotive News writers said that Chrysler was working on numerous changes in the way it works with suppliers, an area where Chrysler was, before Daimler, an industry leader.  Starting with the compact and midsized cars currently being created, Chrysler will start paying some suppliers up front for certain work which is particular to the company (e.g. parts that cannot be sold to anyone else, especially vehicle interior components). Outstanding claims, in general, will be paid far more quickly than the 287 days currently cited by procurement leader Dan Knott.

In addition, rather than paying suppliers only by the piece, the company will now pay portions at various milestones, to help suppliers manage tooling and engineering costs.

The Automotive News article cited suppliers as saying that evidence of Knott’s commitment to better supplier relationships had already borne fruit, as Knott worked on numerous existing disputes to get them out of the way.


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