Wednesday, January 8, 2020

Product Design Management And Supply Chain Management

Product characteristics are found to have major influences on supply chain design and planning (Novak Eppinger, 2001; Salvador, 2002; Fixson, 2005; Caridi et al., 2010; Hashemi Butcher, 2011). Yet to date, this is not well covered in the scholarly literature (Khan Creazza, 2009; Caridi et al., 2009; Pero et al., 2010). There are different approaches to investigate this association, but a general concurrence within this body of work suggests that closer cooperation between product design management and supply chain management functions will enhance the performance of supply chains and reduce risk and uncertainty. From a production management perspective Hobday (1998) discusses that product characteristics – especially those of complex product and systems (CoPS) – play a major role in shaping organisational structures and industrial coordination. Novak Eppinger (2001) further argue that product complexity and vertical integration are also directly related. Vertical integration is the degree to which a firm decides to own its upstream or downstream supply chain (Novak and Eppinger, 2001). Novak Eppinger (2001) argue that coordination of product engineers, designers and purchasing agents will result in improved performance, as they each play a role in â€Å"make or buy† decisions that determine the level of vertical integration (Novak and Eppinger, 2001: 202). Salvador et al. (2002) claim that despite the interdependence of product, process and supply chain design there isShow MoreRelatedCompetitive Supply Chain Relationship Management Essay1416 Words   |  6 PagesCOMPE TITIVE SUPPLY CHAIN RELATIONSHIP MANAGEMENT PRACTICES IN ORGANIZATIONS PRACTICES THROUGH COMPETITIVE PRIORITIES. Over the years, the competition landscape for most companies has shifted from the highest-quality, lowest priced product or best performing product to the ability to respond to market needs quickly and get the right product at the right time to the right customer. 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