Challenges to Use of Cross-Functional Teams in New Product Development: a Case for Early Purchasing Involvement and Early Supplier Involvement

Challenges to Use of Cross-functional Teams in New Product Development:

A Case for Early Purchasing Involvement and Early Supplier Involvement

Abstract

This paper illustrates the challenges occurring in a commodity sourcing strategy, specifically as they apply to the formation and management of cross-functional teams (CFT), of new product development (NPD), early purchasing involvement (EPI) and early supplier involvement (ESI). First, the paper will define the concept and the role of strategic sourcing as it applies to the production process and the implementation of CFT to bring together key elements of a finished good as NPD and supply chain management (SCM) process. The research identifies various methods of selection process used for the integration of EPI and ESI and its impact on the NPD. Finally, the paper provides a discussion of how strategic alliance can be used to mitigate the challenges, which arise within the CFT, by illustrating how the use of NPD can positively affect the long-term relationship with purchasers and suppliers.

Keywords

Commodity: finished good; Strategy to mitigate challenges: strategic alliance.

Challenges to Use of Cross-functional Teams in New Product Development:

A Case for Early Purchasing Involvement and Early Supplier Involvement

This research presents and critically analyses the challenges related to the use of cross-functional teams for new product development (NDP), complemented by early purchasing involvement (EPI), and supplier involvement (ESI). Evidence suggests that concurrent engineering, complemented by EPI and ESI can have a tremendous potential in addressing the three key issues of time, quality, and cost. However, for managers accustomed to the traditional sequential, or pipeline, approach to technology and product development the use of cross-functional team may raise several challenges. Nevertheless, the rapid escalation of global competition is demanding dramatic reductions in the...