Coordinating new product development with supply chain management

Abstract

PurposeThe purpose of this paper is to form an understanding of how new product development (NPD) relates to supply chain management (SCM), why the two fields should be coordinated, and how this may be done.Design/methodology/approachThis research uses a literature review and case study research. The case study considers a Swedish company that operates on a global basis in the furniture industry. Empirical data have been collected mainly from in‐depth interviews with key persons representing senior and middle management in the case company.FindingsThis paper stresses the need to produce innovative, value‐adding products, as well as the necessity to quickly deliver them to the market. Companies that face mature business environments may encounter problems due to a high emphasis on either the value‐creation processes, or on the value delivery processes. Therefore, NPD activities need to be coordinated with SCM activities on a strategic level, lest competitiveness will be lost.Research limitations/implicationsThe research is limited to one case company; replication studies would enhance understanding of the studied phenomenon. There is a wide need for research exploring how various parts of demand and supply chains should be managed in order to fully utilize the advantages of the consumer‐oriented enterprise.Practical implicationsThis paper provides insights for researchers and practitioners on how to coordinate and balance NPD (demand side) with SCM (supply side) activities. It highlights that companies should organize themselves around understanding how consumer value is created and how these processes may be coordinated to provide that value. The two processes must be given equal attention and importance to avoid sub‐optimization.Originality/valueThe need for coordinating NPD and SCM activities has been emphasized in the literature but still remains relatively unexplored. This paper contributes by investigating this issue further.