Purchasing's role in global new product-process development projects

Current international business conditions dictate companies placing more emphasis on developing innovation-oriented as compared to cost-oriented supply chains. This includes adopting a cooperative approach to new product-process development (NPPD) with the purchasing function playing a key role, a difficult transformation for many firms. A descriptive case study is utilized to describe how disparate companies from different parts of the world were able to achieve the organizational changes necessary for a favorable outcome. Important managerial issues are examined and knowledge is presented concerning the why and how aspects of collaborative NPPD in the context of a global chain. The findings indicate that appropriate supplier selection, implementing a project management approach, generating trust, and utilizing effective communication methods are among the keys to success. The paper provides the impetus for increased adoption of collaborative NPPD and also offers stimulation for additional research.

► Innovation-oriented chains concentrate on delivering customized goods and services.
► Collaborative new product-process development is very important, but underutilized.
► Purchasing plays a critical role in collaborative new product-process development.
► Case studies make a contribution to management practice and theory building.
► Firms performing well in the long-run are making difficult organizational changes.