Supplier Involvement in New Product Development

Running head: PURCHASING AND MATERIAL MANAGEMENT
Purchasing and material management
Name of Student
Name of University
Author Note

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PURCHASING AND MATERIAL MANAGEMENT
Abstract
The report focuses on the importance of Early Supplier Involvement in the modern world.
From the report, it has been found that the application of such a strategy can help an
organisation reduce any mistakes regarding designing of product. Recommendations are
made in order to improve such a system in emerging markets for the betterment of the
organisations in those regions. Retail sectors also need to implement this strategy in order to
maintain the quality of the products.

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PURCHASING AND MATERIAL MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Literature Review.......................................................................................................................3
Concept of Early Supplier Involvement.................................................................................3
Importance of Early Supplier Involvement............................................................................4
Early Supplier Involvement in new product development.....................................................5
Early Supplier Involvement and Resource Dependency Theory...........................................6
Early Supplier Involvement and Social Exchange Theory.....................................................7
Hypothesis and gaps...............................................................................................................8
Research method........................................................................................................................8
Findings......................................................................................................................................9
Discussion of findings..............................................................................................................10
Implication of findings.............................................................................................................10
Conclusion................................................................................................................................11
Reference..................................................................................................................................12
Appendices...............................................................................................................................15
Appendix 1...........................................................................................................................15
Appendix 2...........................................................................................................................15

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PURCHASING AND MATERIAL MANAGEMENT
Introduction
The report focuses on the concept of early supplier involvement in the business world.
Early Supplier Involvement is used to define the collaboration between supply chain partners
and manufacturers at the initial stage of product development (Brindley, 2017). The reason
for choosing this topic is to understand the benefits that a business may encounter if the
suppliers are involvement from the initial stage before the development of a product. The
study can help in understanding the theories involved in the supply chain and the results that
are normally derived by a manufacturer. The report can help in comparing the difference
between involvements of suppliers at an early stage with that of the involvement at a later
stage. The report focuses on reviews by scholars and identifies models involved in
understanding the topic. The methods used for gathering data has highlighted that help in
deriving the result. The discussion related to findings and the implications are mentioned in
the report.
Literature Review
Concept of Early Supplier Involvement
In the modern day, every business organisation wants to gain a competitive advantage
in the market. This needs to be done by formulating strategies that are required for
conducting the business in a proper manner. According to Menguc, Auh & Yannopoulos,
(2014), Early Supplier Involvement (ESI) is one such strategy that is adopted by managers in
order to promote a product before its release. This promotion is done by involving the
stakeholders that have considerable interest in the company. The stakeholders involve the
customers, suppliers and the manufacturers. The early involvement of the stakeholders
provides various advantages to the business. One such advantage is the better quality of