Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems by Handfield Robert B

Author:Handfield, Robert B....
Language: eng
Format: epub
Published: 2015-07-31T20:07:56.708000+00:00

Research and Development

As supply chain partners work more closely together, sharing new-product information will become increasingly important. Moreover, suppliers will bring with them proprietary technologies to be used in their customers' products, whereas customers may also jointly develop new products with suppliers and share with them their new-product configurations and architectures. Control over technology will continue to be a major issue. Supply chain partners will have to reach an understanding regarding ownership and control of technology and to determine an appropriate division of return on investment for the technology.

In the computer industry, technology ownership is becoming increasingly important as manufacturers and suppliers collaborate in building new products that often have product life cycles of less than six months. In one major company, all of the technology ownership issues are decided early in the relationship. Suppliers are required to sign a standard contractual agreement prior to the start of all design work with the buying company. This contract outlines the general nature of the relationship between the parties and establishes a protocol for issues such as nondisclosure of confidential information and patent rights for inventions related to the design activity. Such a contract is required before any business takes place with a supplier and serves to define underlying expectations for the future relationship.

Technology ownership and splitting market share will become even more important because of the increasing trend toward consumer direct marketing driven by technologies such as the World Wide Web. It is estimated that by 2007, more than 20 percent of product sales will be directly from manufacturer to consumers, thereby eliminating distributors and retailers. As this trend unfolds, there will undoubtedly be conflicts regarding market access, market share, and risk/cost/benefit sharing between the parties involved.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.