Purchasing For Engineering And New Product Launch
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The document discusses the different needs and skills required for purchasing related to new product development versus general purchasing. It notes that new product development purchasing requires a strategic business view, the ability to translate technical needs into business terms, and flexibility to develop new suppliers. It recommends not fully integrating new product development purchasing with general purchasing and instead having a director-level leader reporting to the CPO, with their own budget and metrics to track success.
Purchasing For Engineering And New Product Launch
- 1. Different Needs and Skill
- 2. Reduce development cycle time Speed up scalability to mass introduction Deliver fantastic technology “Design in” total cost targets and margins
- 3. Cost per unit Maintain production schedules Inventories Quality Supplier consolidation The key factors here do not align with those critical for Purchasing for New Products and Engineering
- 4. Strategic Business view Ability to translate technical/design needs into business terms for Sourcing Ability to identify and facilitate technical partnerships with supply base Flexibility to identify and develop new suppliers Understanding of capabilities of existing suppliers Willingness to allow technical and design teams to lead within boundaries of project while guiding towards goals Sense of humor
- 5. Best NOT to integrate with general Purchasing on day to day basis Leader should be Director Level Purchasing leader reporting to CPO Share resources with general Purchasing but may locate with development teams Needs budget for travel and supplier development including funds to cover peripheral support from Quality and others as needed
- 6. Purchasing should keep the metrics for Engineering/Development Purchasing projects Total project cycle time Initial cost to plan and ongoing margins Technologies introduced Peer review Tracking of new suppliers v. using existing suppliers Overall success of projects