The New Supply Chain Agenda: The 5 Steps That Drive Real Value by Slone Reuben

Author:Slone, Reuben...
Language: eng
Format: epub
Published: 2015-09-02T20:02:26.869000+00:00

Begin with Product Design

A world-class supply chain begins with the design of the product, and a world-class design starts with the customer. A well-known axiom in product design holds that once design engineering completes the product design, at least 80 percent of the product quality and cost are set. The suppliers and factory only affect, at most, the remaining 20 percent. It does little good to pressure manufacturing to improve cost or quality once it loses most of its freedom. In our experience, most manufacturing companies acknowledge this problem, and therefore most involve manufacturing in the product design process to address it. However, very few have taken the next step. Few companies seem to understand that the same principle also applies to supply chain’s involvement in the design process.

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