DaimlerChrysler, Extended Enterprise

Pay attention to details and follow up. DaimlerChrysler, from "Making the Extended Enterprise Work"... 

No less impressive was the parallel development of the "extended enterprise" to complement the platform teams. Extended Enterprise is a trade-marked term applied by DaimlerChrysler to describe its partnership with suppliers. The imderlying philosophy behind the Extended Enterprise fundamentally changes the relationship between DaimlerChrysler and those outside the organization essential to its success. It is an example of the type of relationships that we ve discussed in this section. We predict that many features of the Extended Enterprise will find their way into partnerships in other industries. 

What does SCM demand of the art and science of cost management that doesn t already exist The first, and most obvious change, is that cost reduction in SCM has moved beyond the single department or company. It s no longer good business to limit oneself to one s own company for cost-saving opportunities. It is also, in all probability, relatively ineffective. Models like DaimlerChrysler s Extended Enterprise (Chapter 20) will become more common. 

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