Study On The Integration Of Development Chain And Supply Chain In SG Company

In the ever-changing world of economic globalization and technologies renovation, the shorten product life cycles and diversified customer requirements results in the unprecedented opportunities and challenges as well for enterprises. Among the increasing number of theoretical and empirical studies to catch up with the revolutionary change, the mass customization is a new production pattern that combines both low cost of mass production and meeting the diversified customer expectations. New products developed from development chain delivered unique values to customer while supply chain delivered the new products through channel with cost and time effective manners. Those two strategic processes interacted and integrated each other which reflected the strategic plan of the company and is also a great source of benefit. The integration of development chain and supply chain is a powerful tool for core competitiveness enhancement.In this paper, author reviewed the studies of new product development chain and supply chain theories in the context of mass customization. The development chain and supply chain interactions and restrictions was also reviewed. The study showed that the modularization and standardization during the new product development stage and the postponement strategy in the supply chain management combined together could be a practical solution for the product diversification in the mass customization context. Modularization exceeds the traditional function of facilitating the development and controlling the quality. It builds the foundation of supply chain postponement strategy. On the other hand, the information channel within the supply chain also turns out to be a platform of development chain efficiency enhancement.SG Company is a global company commits itself to high performance material products design and production. The case study on the SG company Bearing business unit global supply chain and development chain integration showed that the development efficiency improvement and supply chain total inventory and lead time reduction as well as the total cost improvement due to the integration benefit which gives a good example for the similar industry companies to build up their distinctive competitiveness.