New product development in a manufacturing company : A challange for supply chain management

The last decades a new type of business environments has evolved characterized by rapid and volatile demand changes, short product life cycles, and high levels of customized products. The competitiveness of a business in these environments is mostly determined by its responsiveness. This is characterized by the ability to quickly scale up or down the production volume, the presence of an innovative and fast product development, and the quick incorporation of customer requirements into the product development. This paper employs a descriptive single case study approach to illustrate how product development is structured and executed in an international manufacturing company, seeking to realize an innovative, predictable, and efficient product development. The objective is to increase the understanding of how product development and product life-cycles are connected to Supply Chain Management (SCM). Case study findings reveal that the case company after implementing a strategic and structured Product Creation Process (PCP) has improved the efficiency and effectiveness of product development. Findings also reveal that the case company has not yet developed any linkages between product development and SCM. Still, the case company has become aware of this issue due to problems associated with the lack of integration between product development and SCM