Case Study Early Supplier Integration in the Design of the Skid-Steer Loader
1. Suppose there are 100 potential suppliers. How many suppliers do you think should ideally be integrated in the early skid-steer development process? Why that many or that few?
The case for early integration of suppliers in the new product development process is compelling, but it is important to recognize that supplier integration is a process that must be managed properly in order to achieve maximum impact. Primary candidates for supplier integration should be based in terms of their impact on product performance, their technical complexity, their impact on product development time, and their impact on product cost. It not necessary that if 100 suppliers are required to be integrated, all the suppliers will be ready to become the part of the early development process. If company is thinking for long term integration then the supplier's future capabilities may be as important as their current capabilities. Supplier involvement in a product development effort can sometimes be uncomfortable and therefore without commitment in both organizations, the communication and sharing of information and resources necessary to make the relationship work will probably not occur. The number of potential supplier’s involvement in this situation will depend on all these factors and hence cannot be assigned a number. It can be 100 or it can be 0

2. Are there tradeoffs in terms of the number of suppliers to integrate? If so, what are the tradeoffs
Yes, there are tradeoffs in terms of the number of suppliers to be integrated. Depending on the type of different skid-steers will be developed the suppliers has be integrated in initial stage.
a. Purchasing – The suppliers need to be identified from whom the company will buy products to reduce cost.
b. Cost or Price – From above price is the second