why supply chain should be involved in product design course hero

The effect of design on the supply chain means that it is essential that logistics and supply chain staff are involved at the product design stage. So how can design reduce supply chain costs?

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Should supply chain and procurement be involved in product design?

Read Why Supply Chains Should Be Involved in Product Design in Part Three of the textbook. Send your answers to the questions to me at [email protected] Background In an industry with very few and very large original equipment manufacturers, TechCo is considered a first tier supplier. A high-tech electronics manufacturer, TechCo supplies products to original …

How can supply chain managers drive new product development?

 · For maximum efficiency, material flow, money flow, and information flow in the supply chain should be managed in an integrated manner that can drive the service and cost objective of the firm. iii. The integrated supply chain requires a reappraisal of the strategy in which internal and external customers, and supplier relations are created.

Is your supply chain ready for new product success?

 · The primary purpose from the existence of any supply chain is to satisfy customer needs, Customers Retailers Wholesalers / Distributors Manufacturers Component / Raw material suppliers A supply chain is dynamic and involves the constant flow of information , product , and funds between different stages .

What is a supply chain and why is it important?

 · The supply chain depicts the creation and sale of a product-the chain is somewhat different when a service is involved. The supply chain has five components: raw materials; manufacturer; distributor; retailer; and the consumer. Raw materials come from any number of suppliers, which in turn become part of a manufacturing process, which produces ...

Why supply chains should be involved in product design?

Involving supply chain and other cross-functional teams during the design process helps answer design and materials questions that solve problems long before they happen and ultimately improve timeline efficiency.

What is product design in supply chain?

Product design is nothing but process of imagining, creating, and iterating products that solve users' problems or address specific needs of a market. Prior to the mass-production era of manufacturing, craftspeople built products primarily by hand.

How product design affect supply chain?

Product Design and the Supply Chain shows how decisions taken at the design stage of a product's life cycle go on to affect that product's subsequent value to a company. Eighty percent of a product's eventual supply chain costs are already present at the early stages of product design and development.

How did product design might affect supply chain of a company?

Product design can also address the costs involved with transportation and inventory. These are often critical supply chain cost drivers, especially when inventory levels must be kept high to ensure service levels.

Why is product design important in supply chain?

A product might be attractive for customers but drive unnecessary supply chain costs because of the impact the product design has on sourcing, packaging, production, warehousing and transportation. 70-80% of the cost of goods of a product is decided at the development and design stage by factors such as the number of materials and components, country of supply, lead time of materials, standardization of parts across the product portfolio, physical characteristics, and the complexity of the product.

What is the difference between supply chain and product development?

Product development and design teams don’t always have the ideal materials and processes in mind while designing a new product , whereas supply chain generally has a better understanding of the process, material, and component availability required to produce a product efficiently and effectively.

Why is product standardization important?

Product standardization and common components that are used in many different products reduce the requirements for changeovers on the production lines and for high inventory. The right design decisions can help to standardize core manufacturing processes and minimize customization and differentiation until late in the production process.

Why are lighter materials more cost effective?

Sometimes more expensive, lighter materials are more cost effective to transport and have a positive overall impact on the cost of goods. For ecommerce, the design of the products can determine how much packaging is needed to protect and ship the products.

Do warehouses have pallets?

Most warehouses have standardized rack dimensions and store products on pallets. Ideally, the packaging of products allows optimization of the tie (number of cartons on one layer) and tier (number of layers of cartons) of a pallet pattern.

Is China packaging competitive?

Packaging from China might be very price competitive, but the lead times are long, require large minimum order quantities, can be complex to source, and quality is more difficult to control than when sourced more locally.

Why is supply chain performance important?

Supply chain performance plays a critical role in the NPD process because it not only drives the investment of capital into production and distribution capabilities, but also, in many cases, determines the critical path for launch dates. Along with supply chain, many functions play a critical role in making NPD a success, including sales, marketing, research and development (R&D), legal and regulatory, quality, program management and executive management. Using a systematic and methodological approach to close NPD performance gaps and execute targeted opportunities for supply chain and other involved functions, companies should be better positioned to improve the business success of launched products.

Why is innovation important?

Innovation is one of the highest priorities of executives across industries, but it is challenging for companies to consistently improve. Driving more new product innovation that produces market successes and increased profitability relies on several important levers, including involvement of the supply chain.

What is the key to optimizing the NPD process?

A key to optimizing the NPD process is a well-aligned and mobilized cross-functional team. As an example, companies that involve supply chain specialists as early as possible in the NPD process gain competitive advantage in driving new product success by ensuring the product can be supported functionally and profitably by the supply chain.

What is the purpose of each stage of a supply chain?

The supply chain enables a company to understand others that are involved in each of the stages , and thereby provides some insights on the attractiveness or competitiveness in industries the company might want to enter in ...

What is supply chain?

A supply chain is an entire system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery of the product or service to end-users. The supply chain lays out all aspects of the production process, including the activities involved at each stage, ...

What is generic supply chain?

The generic supply chain begins with the sourcing and extraction of raw materials. The raw materials are then taken by a logistics provider to a supplier, which acts as the wholesaler. The materials are taken to a manufacturer, or probably to various manufacturers that refine and process them into a finished product.

What is a product order?

When a customer places an order for a product, the product order is being processed by technology such as a checkout cart, an order system, or a third-party product such as Shopify. The payment processors then come in and deal with payment transactions for the order, which actually opens up a new supply chain.

What happens to the finished product after the consumer buys it?

Once the consumer buys it, this completes the cycle, but it’s the demand that then goes back and drives the production of more raw materials, and the cycle continues.

Is a warehousing company a logistics company?

The warehousing company can be either in-house or a third-party logistics provider. The order then goes from the warehouse to the shipping company. Once again, the shipping may be in-house or a third-party shipping company. After shipping, the package arrives at the customer’s door and the customer receives it.