Supply Chain

RESEARCH BRIEF

MARCH 2013

SUPPLY CHAIN AND NEW PRODUCT INTRODUCTION: AN ESSENTIAL MARRIAGE

Supply chain executives whose functions are strongly connected with new product introduction (NPI) processes are more highly valued by business leaders, analysis of field data suggests.

INTRODUCTION

For many successful businesses the link between supply chain management and new product introduction (NPI) is critical. Although NPI is primarily a function built around specialist capabilities in engineering, research & development and design, it is also inextricably linked to demand management functions like marketing and sales, and to supply management functions like sourcing, manufacturing and logistics. In fact, as we have argued in the past, businesses that are able to merge these functions seamlessly will generally have a competitive advantage in terms of getting faster to market with better new products.

Figure 1 NPI value creators

PRODUCT R&D Engineering Design

Sourcing Manufacturing Logistics

SUPPLY

NPI CYCLES

DEMAND Sales Marketing Customer Service

© 2013 SCM World, a RaptureWorld Company. All rights reserved. This document is the result of primary research performed by RaptureWorld Ltd. RaptureWorld’s methodologies provide for objective, fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by RaptureWorld Ltd and may not be reproduced, distributed, archived or transmitted in any form or by any means without prior written consent by RaptureWorld Ltd (6443794).

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SUPPLY CHAIN AND NEW PRODUCT INTRODUCTION | MARCH 2013

LINKING NPI AND SUPPLY CHAIN CREATES VALUE: THE CASE OF APPLE

The most prominent example of this phenomenon is perhaps Apple, whose approach to NPI weaves together product management, demand management and supply management so closely that their product launch execution resembles programme management as...