New Product Development is more challenging now than ever before as most products are required know-how across disciplines and organizational boundaries. The interdisciplinary teams are across from the supply base to design, prototype, and bring the products to market.
Furthermore, an innovation that broadening the product development views in managing the product lifecycle requires input from business units including design and engineering, marketing and sales, legal, finance, and procurement. The process requires a large amount of coordination, communication, collaboration, and control.
Logistics plays a critical role in the success of new product development. It is as equally important as research and development, engineering, and sourcing. If a new product does not make it in time to the market, it would lose its competitive advantage or required expensive expedited transportation. Involvement of logistic considerations in the product development process helps in optimizing the fit between supply chain capabilities and product designs. The infrastructure limitations and the supply chain capabilities can be tackled through product configurations.