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Supporting New Products In The Supply Chain

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Drew Forte
Drew Forte

The document discusses how supply chains can better support new product launches. It argues that supply chains need improved cross-functional planning between areas like package design, transportation modeling, and cost calculation. It also argues that supply chains need more agile execution capabilities like postponement, improved demand visibility, distributed order management, and intuitive fulfillment technologies. Successful companies link cross-functional planning with agile supply chain execution to support new product introductions.

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Supporting New Product Launches With Your Supply Chain Drew Forte Director Supply Chain Improvement
Supply Chain and New Product Introduction Trends and Challenges ,[object Object],| Coordinated New Product Launches Product Lifecycle Management S&OP Planning Supply Chain Management
Supply Chain and New Product Introduction Trends and Challenges ,[object Object],| “ While corporate resources are understandably weighted toward R&D, engineering and sourcing on the front end of new product development, the back end of the supply chain can be equally critical to success.” -Jean Murphy, Global Logistics & Supply Chain Strategies
Supply Chain and New Product Introduction Trends and Challenges ,[object Object],| “ The primary reason for this is the highly siloed nature of the organizations as well as the software solutions. Product information management, ERP, Master Data Management (MDM), and demand management are all involved in some aspect of product introduction processes but are un-integrated and worse when it comes to replicating business processes.” -Nari Viswanathan, Research Director, Supply Chain Planning, The AberdeenGroup
Supply Chain and New Product Introduction Trends and Challenges ,[object Object],| Distribution Transportation Retail Manufacturing Product Design
Supply Chain and New Product Introduction Trends and Challenges ,[object Object],|
Supply Chain and New Product Introduction Trends and Challenges ,[object Object],[object Object],[object Object],|
Improved Cross-Functional Planning: ,[object Object],| Load building Storage density Conveyability
Improved Cross-Functional Planning: ,[object Object],| What-if scenarios Community benchmarking Mode analysis
Improved Cross-Functional Planning: ,[object Object],| True cost to serve Determine price points Determine optimal staging areas for inventory Source: i2 Technologies Purchase price Transportation Interest Insurance Handling Quality Risks Total Landed Cost Customs & Tax Inventory
Agile Execution ,[object Object],| Postponed Differentiation • Ship WIP to staging points in bulk • Perform kitting, final assembly, personalization closer to demand Postponed Allocation • Line-item visibility • Divert-in-transit
Agile Execution ,[object Object],| Multi-enterprise collaboration Demand signal repositories Predictive analytics
Agile Execution ,[object Object],|
Agile Execution ,[object Object],| • Ability to incorporate blended demand forecasting • Allocate enough space in the warehouse • Allocate the RIGHT space in the warehouse Source: Rubiks.com
Agile Execution ,[object Object],| • Draw from a small SKU set of fast moving new products • Put to store or consumer order • Dynamic forward pick areas Source: FKI Logistex Source: Remstar Source: Kiva Systems Source: Remstar
Agile Execution ,[object Object],| • Short learning curve • Well-suited to temp or seasonal workers • Flexible Source: Lightning Pick
In conclusion… ,[object Object],|
Supporting New Product Launches With Your Supply Chain Drew Forte Director Supply Chain Improvement, FORTE [email_address]

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Supporting New Products In The Supply Chain

  • 1. Supporting New Product Launches With Your Supply Chain Drew Forte Director Supply Chain Improvement
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  • 18. Supporting New Product Launches With Your Supply Chain Drew Forte Director Supply Chain Improvement, FORTE [email_address]