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Should suppliers be involved in the development of new products?

A manufacturer of high voltage components for electrical distribution networks was preparing to develop a new product, with the aim of widening their product range and gaining market share in a highly competitive space.

Starting from a blank page, this industrial company turned to AVENCORE to implement a design-to-cost project, in order to bring the right product to the market at the right price point. This was an ambitious project, under a tight schedule.

To support the customer across all their operations worldwide, we assembled a mixed team of French and American consultants. This international deployment also allowed us to involve all relevant suppliers, in China, India and the US, in the co-development of this new product. Specifications, architecture, design and supply chain organization were all defined in close collaboration with these suppliers to optimize every development stage.

The success of this project proves the benefit of an upstream involvement: product direct costs were cut by 20% compared to early estimates.