Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

PLUS+ Customer Service Support


Customer service for all PLUS+ subscribers is available Mon-Fri, 9am-5pm Eastern time.

Email: [email protected]
Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)
Mail: PO Box 1496, Framingham MA 01701-1496, USA



You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

Collaboration leads to clear benefits for procurement and product development

Suppliers can inform product development and the R&D group can help select the best suppliers.

By ·

To promote efficiency and effectiveness, organizations are encouraging collaboration among related functions within the enterprise. Two areas for which this makes sense is the research and development (R&D) or product engineering group and the procurement group. In product development, members of the procurement group can provide insight regarding the purchasing of product components. Some organizations are going a step further to involve select external partners as well. In fact, APQC’s Open Standards Benchmarking data in product development indicates that 66% of organizations involve their suppliers in new product or service development, including product improvements and extensions. In turn, members of the R&D function can be involved in the selection of suppliers to ensure the best supply of components and materials.

APQC’s research indicates that organizations encouraging collaboration between the R&D function and suppliers can take advantage of benefits such as a reduction in the total cost to manufacture a product or easier sourcing of components. Involvement of the R&D function in supplier selection and appraisal can lead to lower procurement costs. However, these benefits may come at the expense of some aspects of procurement efficiency.

Supplier involvement in product development
The amount that organizations involve their suppliers in the product development process varies, with only about 31% of organizations having extensive participation of suppliers in these efforts. Those that do have extensive participation can create opportunities that are mutually beneficial. APQC has found that one way organizations accomplish this is by involving suppliers in the management of cost targets for new products and their components. Organizations communicate cost targets for products or components to their suppliers at varying stages of the development process. As shown in Figure 1, a similar number of organizations communicate cost targets to suppliers during the design stage of product development as during the sourcing stage. Only about 19% of organizations communicate targets to suppliers during the earlier stages when product specifications and concept designs are developed, and about one-third of organizations do not communicate cost targets to their suppliers at all.

This complete article is available to subscribers only.
Click on Log In Now at the top of this article for full access.
Or, Start your PLUS+ subscription for instant access.

Latest News

Third Party Risk: Too Close for Comfort
The State of the DC Voice Market
DHL launches Global Trade Barometer
Get the lay of the land with Modex 2018 show map
Breaking Through On Yard Visibility
More News

Latest Resource

Third Party Risk: Too Close for Comfort
You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
All Resources
By ·
Download Article PDF

To promote efficiency and effectiveness, organizations are encouraging collaboration among related functions within the enterprise. Two areas for which this makes sense is the research and development (R&D) or product engineering group and the procurement group. In product development, members of the procurement group can provide insight regarding the purchasing of product components. Some organizations are going a step further to involve select external partners as well. In fact, APQC’s Open Standards Benchmarking data in product development indicates that 66% of organizations involve their suppliers in new product or service development, including product improvements and extensions. In turn, members of the R&D function can be involved in the selection of suppliers to ensure the best supply of components and materials.

APQC’s research indicates that organizations encouraging collaboration between the R&D function and suppliers can take advantage of benefits such as a reduction in the total cost to manufacture a product or easier sourcing of components. Involvement of the R&D function in supplier selection and appraisal can lead to lower procurement costs. However, these benefits may come at the expense of some aspects of procurement efficiency.

Supplier involvement in product development
The amount that organizations involve their suppliers in the product development process varies, with only about 31% of organizations having extensive participation of suppliers in these efforts. Those that do have extensive participation can create opportunities that are mutually beneficial. APQC has found that one way organizations accomplish this is by involving suppliers in the management of cost targets for new products and their components. Organizations communicate cost targets for products or components to their suppliers at varying stages of the development process. As shown in Figure 1, a similar number of organizations communicate cost targets to suppliers during the design stage of product development as during the sourcing stage. Only about 19% of organizations communicate targets to suppliers during the earlier stages when product specifications and concept designs are developed, and about one-third of organizations do not communicate cost targets to their suppliers at all.

SUBSCRIBERS: Click here to download PDF of the full article.

Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Article Topics

Procurement · All Topics
Latest Whitepaper
Third Party Risk: Too Close for Comfort
You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
Download Today!
From the December 2017
This is a comprehensive guide to services, products and educational opportunities targeted specifically to supply chain professionals. As with years past, we’re also featuring several articles we trust will offer food for thought in your supply chain throughout the coming year.
Transportation Trends: The last mile, history repeating
Economic Outlook: A Complex and Uneven Scenario for Global Supply Chains
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
The Perfect Formula for Determining the Right Amount of Inventory
This webcast explains how the science of theoretical minimums, a new approach to inventory optimization, provides a simple and elegant way to reduce cost and increase customer service levels by monetizing time delays across the extended supply chain.
Register Today!
EDITORS' PICKS
Atradius Issues New Report on Supply Chain Risk in North America
The U.S. shows strong economic performance, but the looming risk that leadership in Washington will...
2018: The year we make meaningful progress on digital transformation
Perhaps it would have been better to describe it as a digital evolution – more of an ongoing...

Industrial and Supply Chain Real Estate Expected to Soar in 2018
Strong economy and insatiable demand for online shopping behind industrial real estate resurgence
Ongoing Supply Chain “Disruptions” Indicated in Latest Ti Survey
According to Logistics Surveys 2017, the express industry has already undergone transformation, not...