All of the following are elements of successful supplier suggestion programs except _____.
A)the savings from the suggestion are often shared 50/50, not kept solely by the buying company
B)the program focuses on total cost improvement, not simply cutting the supplier's margins
C)successful buying companies provide prompt feedback to the supplier on its ideas and also implement good suggestions promptly
D)it is critical to acknowledge the supplier's suggestions, through an awards program, newsletter, or announcement at a supplier conference
E)the supplier should be allowed to keep 100% of the savings since it came up with the idea

Question

Quizplus · Accepted Answer

All other options are elements of successful supplier suggestion programs, while option E is not. Allowing the supplier to keep 100% of the savings may deter the buying company from implementing the suggestion, as they would not receive any benefit from it. Sharing the savings incentivizes both parties to work towards cost improvement.

All of the Following Are Elements of Successful Supplier Suggestion