Supply Chain Success in Modern Industry:

The Impact of New Product Development and

Innovation on Supply Chain Management
P R E PA R E D F O R R E N S S E L A E R S L A L LY S C H O O L O F M A N A G E M E N T C E N T E R F O R S U P P LY C H A I N A N D
A N A LY T I C S S P E A K E R S E R I E S
SPEAKER: LINDSEY RAPPLEYEA, RPI CLASS OF 2013
D AT E : N O V E M B E R 1 8 , 2 0 1 5

About Me
Name: Lindsey Rappleyea
RPI Class of 2013: Dual Degree in Mechanical Engineering and Design, Innovation and Society
Varsity Track and Field, Entrepreneurship Exemplars Program, Teaching Assistant for PDI Studio I,
Creativity, Innovation and Entrepreneurship, and Inventors Studio, Undergraduate Research on the
Philosophy of Design with Professor Burt Swersey

Professional: New Product Development/Process/Quality Engineer at W. L. Gore and Associates

Personal: Live in Delaware, enjoy sports (running, soccer, volleyball), outdoors activities,
traveling, music, gaming

About Gore
A uniquely inventive, technology-driven enterprise focused on discovery and product innovation.
Industries:
Aerospace

Industrial and Manufacturing

Automotive

Medical

Chemical Processing

Military

Computer, Telecom, Electronics

Pharmaceutical and Biotechnology

Energy

Semiconductor and Microelectronics

Environment

Textiles

Fire and Public Safety

About Gore
A uniquely inventive, technology-driven enterprise focused on discovery and product innovation.
Industries:
Aerospace

Industrial and Manufacturing

Automotive

Medical

Chemical Processing

Military

Computer, Telecom, Electronics

Pharmaceutical and Biotechnology

Energy

Semiconductor and Microelectronics

Environment

Textiles

Fire and Public Safety

Agenda
What is:

Supply Chain Management (SCM)?

New Product Development (NPD)?
Innovation?
The NPD/SCM Gradient?

How:
Are SCM and NPD connected?

What:
Can we do to move through the NPD/SCM gradient faster?

Why:
Do we care about the relationship between NPD/SCM?

Conclusion

The NPD/SCM Gradient

What is: Supply Chain Management

Management of the flow of goods and services
Movement and storage of raw materials, work-in-process inventory, and finished
Point of origin to point of consumer consumption
Can be divided into 3 main flows:
Product
Information
Monetary

Product Flow

What is: Supply Chain Management

Recycling of Goods (Optional)
Marketing and Product Information

Materials Processing
Finished Goods
Production

Inventory
Demand

Production/Inventory

$
Supplier(s)

Manufacturer
Raw Materials

Supply/Demand
Forecasting

Inventory
Stock
Supply
Demand

Finished Goods
Supply

Customer
(Retail)

Distribution
Inventory

Financial Forecasting
Demand Planning
Manufacturing Planning
Physical Material/Product Flow

Monetary Flow

$
Purchasing History
Demand

Informational Flow

$
Consumer
Sales

Consumption

What is: New Product Development

A process, or a sequence of steps or activities, which an enterprise employs to
conceive, design, and commercialize a product. (Ulrich)

What is: New Product Development

New Product Development can begin with a completely new product/idea, as
well as with an existing product.
New Product

Creative
Problem
Solving

Innovation

Invention

Derivative Product

Existing Product

Corrective
Action

Line
Extension

Next
Generation
Product

What is: New Product Development

A process, or a sequence of steps or activities, which an enterprise employs to
conceive, design, and commercialize a product.

What is: New Product Development

A process, or a sequence of steps or activities, which an enterprise employs to
conceive, design, and commercialize a product.

What is: New Product Development

A process, or a sequence of steps or activities, which an enterprise employs to
conceive, design, and commercialize a product.

What is: New Product Development

A process, or a sequence of steps or activities, which an enterprise employs to
conceive, design, and commercialize a product.

What is: New Product Development

A process, or a sequence of steps or activities, which an enterprise employs to
conceive, design, and commercialize a product.

What is: Innovation

The process of translating an idea or invention
into a good or service that creates value or for
which customers will pay.
An idea must be replicable at an economical cost and
satisfy a specific need.
Involves the deliberate application of information,
imagination, and initiative in deriving greater or
different values from resources.
Includes all processes by which new ideas are
generated and converted into useful products.

What is: Innovation

What is: Front End Innovation

What is: The NPD/SCM Transition

What is: The SCM Hand-Off

How: Are NPD and SCM connected?

The decisions made during the development process lay the stage for the future
supply chain
Rapid Iteration and Ideation
Design for Manufacturing
Make/Buy Decision
Horizontal vs. Vertical Integration

Existing supply chains and relationships may drive the direction taken and
decisions made during the development phase
Existing products, manufacturing capabilities, raw materials, and market presence
Existing supplier relationships and supplier management

How: Are NPD and SCM connected?

Rapid Iteration and Ideation
Ask questions
Gather information and feedback
from users
Quickly generate ideas and concepts
Frequently test and validate

How: Are NPD and SCM connected?

Design for Manufacturing

Reduce the total number of parts

Develop a modular design
Use standard components
Design parts to be multi-functional
Design parts for multi-use
Design for ease of fabrication
Minimize assembly directions
Maximize compliance
Minimize handling

How: Are NPD and SCM connected?

Make/Buy Decision
Level of control over manufacturing
and quality
Cost
Intellectual property
Volume
Facility and manufacturing availability

Labor
Transportation
Availability of suppliers
Relationships with existing
suppliers

How: Are NPD and SCM connected?

Vertical vs. Horizontal Integration

How: Are NPD and SCM connected?

Existing products, manufacturing
capabilities, raw materials and market
presence
Apply strategic boundaries to design
space
Integration with existing supply chains for
time, cost and resource savings

How: Are NPD and SCM connected?

Leverage existing supplier
relationships to:
Save time and money during
development and transition to
commercialization
Streamline supply chain
development and integration

Supplier Management
Awareness and communication
Contracts

What: Can we do to move through the

NPD/SCM gradient faster?
Lean Start Up Methodology
teaches you how to drive a startup how to steer, when to turn, and when to preserve
and grow a business with maximum acceleration. (Ries)
Using the Lean Startup approach, companies can create order not chaos by providing tools
to test a vision continuously. (Ries)

What: Can we do to move through the

NPD/SCM gradient faster?
Rapid Prototyping
CAD and 3D Modeling
Molding
Plastic
Silicone Rubber
Metal

Subtractive manufacturing with

CNC
Additive Manufacturing
Stereolithography
Selective Laser Sintering
Direct Metal Laser Sintering

What: Can we do to move through the

NPD/SCM gradient faster?
Rapid Prototyping
CAD and 3D Modeling
Molding
Plastic
Silicone Rubber
Metal

Subtractive manufacturing with

CNC
Additive Manufacturing
Stereolithography
Selective Laser Sintering
Direct Metal Laser Sintering

What: Can we do to move through the

NPD/SCM gradient faster?
Understanding of the relationships between NPD and SCM and their importance
Early involvement of cross functional teams
Communication during the transitional period
Ensuring team alignment on project direction and goals

Why: Should we care about the

integration of NPD and SCM?
The Balance of Risk

Quick to Market
Poor long term sustainability
Speed:
Reduce time
to market

Quick to market
Lacking concept validation

NPD Investment:
Problem and
concept validation,
refined design

SCM Investment:
Flow management,
long term
sustainability

Mitigate majority of risks

Slow Time to Market

Why: Should we care about the

integration of NPD and SCM?
The Balance of Risk

Quick to Market
Poor long term sustainability
Speed:
NPD Investment:
Reduce time mitigation
Problem
and
Appropriate
of risks
to market
concept validation,
Concept clarity and validation
refined design

Long term sustainability

Reduced time to market
Success
Quick to market
Lacking concept validation

SCM Investment:
Flow management,
long term
sustainability

Mitigate majority of risks

Slow Time to Market

Why: Should we care about the

integration of NPD and SCM?
Increased efficiency and effectiveness when brining a product from conception
to commercialization
Early NPD decisions can lead to long term supply chain sustainability and
success
Enables agility and flexibility
Source of differentiation

Why: Should we care about the

integration of NPD and SCM?
Methodology vs. Application

Conclusion
What is:

Supply Chain Management (SCM)

New Product Development (NPD)
Innovation
The NPD/SCM Gradient

How:
Are SCM and NPD connected

What:
We can do to move through the NPD/SCM gradient faster

Why:
We care about the relationship between NPD/SCM

Contact Information
Name: Lindsey Rappleyea
Phone: 302.220.7706

E-Mail: Lindsey.Rappleyea@gmail.com
Slide Deck: http://LindseyRappleyea.weebly.com/new-product-development-in-supply-chainmanagement.html

Feel free to contact me at any time!

Sources
Greenlee, Bob. Design for Manufacture Guidelines. University of New Mexico. Web. 09
Nov. 2015.
Martin. "Step-by-step Guide to Make or Buy Decision." Entrepreneurial Insights. 25 Jan.
2015. Web. 09 Nov. 2015.
Ulrich, Karl T., and Steven D. Eppinger. Product Design and Development. New York:
McGraw Hill, 2008. Print.
"What Is Innovation? Definition and Meaning." BusinessDictionary.com. Web. 09 Nov.
2015.