Question

Fully discuss the most important elements that characterise the most successful efforts at intergrating suppliers in new product development and explain how these factors contribute to the success of new product initiatives.

Answer 1

The most important element to integrate the suppliers in NPD is involving them at the design stage. At this stage involving the supplier can help deciding on the features and their feasibility as supplier is the one who will have to make that available. Supplier will be on board strategically which can help the new product for the good.

Also suppliers knowledge about the design should be leveraged in developing a new product.This will bring more commitment on the table from the supplier side.

Another important element is bringing as much transparency on the costs, prices and profits aspects as possible. Supplier should know what monetary benefits are there in this deal for them which will keep them motivated. They should be given their fare share as every business is all about making profits.