The impact of new product introduction on supply chain ability to match supply and demand

Abstract

Supply chain managers should redesign their supply chains in response to the introduction of a new product. In particular, to reach performance targets, they should align the supply chain to the new product features. The objective of this paper is to highlight the negative effects of mis-alignment between product features and supply chains and to propose a set of misalignment indicators, along with an action plan to align supply chains to new products. To this end, an in-depth case study has been performed. In the analyzed company the introduction of a new product line was not followed by a proper redesign of the logistics network, thus reducing supply chain performance. The mis-alignment has been evaluated against a new indicator. Moreover, the main product features that should have been taken into account when redesigning the network, i.e. internal and external variety, and innovativeness, have been highlighted. Finally, a two steps methodology to define a set of coordinated action between product development department and supply chain mangers have been proposed. Keywords: Variety; Alignment; Supply Chain; New Product Introduction International Journal of Engineering, Science and Technology, Vol. 2, No. 9, 2010, pp. 83-93