Challenges in Designing Reliable Supply Chain Ensuring High Level of Customers’ Service Post Sale of Newly Introduced Products Cover Image

Предизвикателства пред изграждане на веригата на доставките за следпродажбено обслужване на нови продукти
Challenges in Designing Reliable Supply Chain Ensuring High Level of Customers’ Service Post Sale of Newly Introduced Products

Author(s): Yulia Genova
Subject(s): Economy, Transport / Logistics
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: supply chain management; product development phase; spares supply chain
Summary/Abstract: Innovations in IT companies are key not only for Company’s success at the market but critical for the way they survive considering the dynamic changes of the industry. Customers’ expectations are increasing with the technology progress and the way IT companies respond to these expectations is often linked with introducing new products. New Product Introduction and designing the right products meeting customers’ expectations is only one step towards increasing company’s competitiveness. There are way more factors contributing to the success of the new product deployment at the market and supply chain is one of these key factors. Supply Chain plays critical role in deploying the newly designed products to market. It has an impact on the cost of the final product, level of service provided to customers, on time availability of the product and its spares required for break fix events, wherever and whenever this is required. Underestimating the role of the supply chain in introducing new products to market may cause unsuccessful deployment of the product and in general may negatively impact to company’s reputation. The report considers this part of the supply chain that is directly responsible for the level of services provided to the customers after sale of newly designed products. It focuses on the challenges in support that may be occurred due to overlooking the importance of the suppliers’ agreements made during NPI (new product introduction). The decisions made during development of the new products (with respect to supply chain) often consider the build of these new products and its components availability. There may be gaps in terms of the post-sale supply chain (with regards to spares) which can negatively influence the service provided to customers who purchased these products. This has critical role in overall success of supporting newly introduced products and can impact in future sales of the same. No matter how competitive the new product is and how demanded by customers it is, if the IT company is not in a position to provide stable support to it by positioning the right spares in the right quantities and quality, at the right time in right locations at the right cost it may fail not only the new product and its distribution but the company as a whole. The goal of this report is to highlight what it takes to build a stable and reliable supply chain providing high level services at optimal cost, at the stage of NPI.