Supplier Involvement in Integrated Product Development: A Comparison of US and European Practices

Increasing competitive parity in the areas of cost and quality has forced global manufacturers to seek other sources of competitive advantage with new product development rapidly becoming the focal point in the quest for sustained growth and profitability. The essence of today′s new product development strategies is the simultaneous development of the new product and the accompanying manufacturing process such that quality is enhanced, costs reduced, and lead times shortened. The implementation of the integrated product development(IPD) process has come to depend on the use of multi‐functional teams. Today, outside suppliers represent increasingly important members of the new product development team. Supplier involvement promotes better resource utilization, the development and sharing of technological expertise, and network effectiveness. Explores the state of supplier involvement in the IPD process, and compares the practices of US and European firms.