Research On The NPD Purchasing Strategy For S Company

S company is one of Fortune500companies. The company launcheshundreds of new products annually to the market, and this approach becomesmajor driving force of sustaining growth of company’s Operating Margin,Market Share and ROI (Return on Investment). NPD (New ProductDevelopment) is key to company’s long-term growth plan. On the other hand,outsource components can now be commonly found and become a criticalportion on new products launched by S company in terms of spending orquality. So it is important to adopt a suitable NPD Purchasing strategy as ithas direct connection to project success. The case of S company is studied inthis paper for NPD Purchasing strategy as it is substantial and determinesdestiny of a project and of the company.At the beginning of this paper, company background of S company, whichis the research objective of this paper, is introduced together with its NPDPurchasing strategy. After that, with research objective put in place, the paperconducts analysis of strategic strength, which includes6advantages fromsupplier selection, cost and quality control, and efficiency improvementperspective, and strategic weakness, which contains of5disadvantages onresource allocation and supplier development strategy standpoint. At the endof this paper, in order to address weakness and to optimize the strategy,suggestions are provided which include set up of dedicated NPD Purchasing resource, development of prototype focus supply base and deployment of costmodel.