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 cost improvement, not simply cutting the supplier's margins
C) successful buying companies provide prompt feedback to the supplier on its suggestion and also implement good suggestions promptly
D) it is critical to acknowledge the supplier's suggestion, 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 the other options are elements of successful supplier suggestion programs, but option E is not. The supplier should not be allowed to keep 100% of the savings since the suggestion is made for the benefit of both parties involved. It is only fair to share the savings between the supplier and the buying company.

All of the Following Are Elements of Successful Supplier Suggestion