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Buyer-supplier best practices in product development: evidence from car industry

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Abstract

Continuous innovations in product and process technology, coupled with time to market pressure, have made rapid product development a key strategic. Consequently, many firms have started to redefine the ways in which products are designed, developed and produced, to reduce the time from conception to manufacture. The strategies employed to achieve this goal vary, and include the integration of functions through selective use of concurrent engineering, the formation of strategic project teams, and information technology. A increasingly strategic role in product development has been played by suppliers and the purchasing department. Even though suppliers are in many cases considered to be integrated members of the development teams, they can not be compared to the internal functions. Communications patters in the external process chain are quite different than the internal ones. Product development requires a fundamental change in the attitudes of both buyers and suppliers.

Suggested Citation

  • Giuseppe Calabrese, 1997. "Buyer-supplier best practices in product development: evidence from car industry," CERIS Working Paper 199704, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    • Handle: RePEc:csc:cerisp:199704
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    1. Peter Wells & Michael Rawlinson, 1994. "The New European Automobile Industry," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-23526-1.
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    More about this item

    Keywords

    car industry;

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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