Buyer-Supplier Collaboration in New Product Development - Reduction of Ramp-up time for high-tech products

Product development has always been a key activity to gain competitive advantage. Especially in technology based industry, such as the maritime subsea industry. Due to increasing globalization and high competition from low cost countries, companies need to streamline the supply chain and development in order to get new product out on the market fast and efficient. Involving suppliers in the development have shown great effect on reduced development time and cost while increasing quality of the product. By involving suppliers and their knowledge in the development, they can contribute to a product that is easier and faster to manufacture. By being a part of the development, the manufacturer and suppliers can get deeper knowledge and understanding of the product they will produce, and be able to prepare and test needed equipment or services in order to be ready to produce the product when production start. These advantages can help reducing the time a new product uses from the start of the development until the manufacturer produces the product at full capacity. The purpose of this thesis is to explore how to involve core supplier in development of new product in order to have an efficient and fast development and production of new product. The study include a review of literature on product development and supplier involvement and a case study of the dyadic relationship between the two Norwegian companies Kongsberg Maritime Subsea and Hadelandprodukter AS. This thesis provide an insight in the strategic factors connected to supplier involvement in development of new products. Such insight are valuable in terms of gaining a greater understanding of how suppliers can be involved in order to have a successful outcome of the involvement. The study also produce some important success factors in both product development and suppliers involvement. Bases on the findings some suggestion for solution to involvement barriers have been introduced