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The suppliers where picked through a competitive bidding process, where the supplier offering the lowest purchasing price won the contract. The contracts given where short ? term, and the coordination and communication between the parties where kept at a minimum. The suppliers had sole responsibility for their components and had no further part in the production process...
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The suppliers had sole responsibility for their components and had no further part in the production process. This government mechanism proved to be inadequate for Chrysler in their situation. The lack of cooperation with the suppliers resulted in a long and expensive production process, which consequently meant that Chrysler lost money and market share...
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