Impact of supply chain management (SCM) on new product development success

Abstract

In many industries, firms are looking for ways to cut concept-to-customer development time, to improve quality, and to reduce the cost of new products. The supplier integration may range from simple consultation with suppliers on design ideas to making suppliers fully responsible for the design of components or systems they will supply.New product development researches also offer many management techniques to improve NPD processes. Questionnaire comprised of 61 questions were distributed to 15 companies with 31 respondents returned as usable feedbacks. Data analyses were conducted using reliability analysis, factor analysis and Pearson correlation analysis. The findings reveled that there is correlation between supply chain integration and product definition and development process. The supply chain integration is the main predictors of product definition effectiveness, development process performance and NPD success. This result suggests that supplier integration, design-manufacturing integration and customer integration influence the effectiveness of product definition and product development process performance.