The document summarizes the launch of a special interest group (SIG) focused on the impact of product design decisions on supply chains. The SIG aims to [1] advance knowledge in this area by sharing research ideas between practitioners and academics, [2] develop frameworks to evaluate how design impacts supply chain costs and complexity, and [3] provide industry collaboration and knowledge sharing opportunities for members. The goals are to better inform design and supply chain planning and help companies realize competitive advantages through their supply chain operations.

1. Product Design and Supply Chain Special Interest Group
Launch Date: 20th July 2011, at Hull University Business School
Research Background potential impact that product design
The Logistics Institute at Hull University decisions can have on through-life
Business School has formed a special profitability. Because there are no accepted
interest group (SIG) to advance knowledge frameworks for evaluating the through life
and evaluate the impact of product design impact of product design, decisions on new
decisions on the supply chain. Aimed products may be taken without a full
primarily at business, the group will seek to understanding of the wider implications of
identify problems and work together to those decisions.
practically solve issues for a long-term
profitable future. How can product design decisions impact
the supply chain?
Time-to-Market and Time-to-Volume -
decisions on the functionality of products can
increase manufacturing complexity and
reduce flexibility and responsiveness.
Space Utilisation and Transport Intensity
- the physical characteristics of the product
will affect the utilisation of space in storage
and transport (see figure 1)
Added Complexity through lack of
Commonality - decisions on product design
impact the Bill of Materials. Low level of
commonality will add complexity
Increased Replenishment Lead Times -
some design decisions will influence the
choice of supplier and therefore increase
lead time.
Supply Chain Vulnerability – sourcing
products from off-shore suppliers will
potentially increase supply chain disruption
Figure 1 Japanese farmers grow square Sustainability and Carbon Footprint -,
watermelons to improve space utilisation! „Design-for-sustainability‟ and end-of-life
considerations now become a priority for all
businesses.
Product design has long been recognised Late Stage Customisation - the ability to
as a key driver of competitive success in postpone the final configuration or packaging
the marketplace. When Japanese farmers of a product will clearly be enhanced or
pioneered the square watermelon which constrained by design decisions.
was easier to pack, it became clear that After Sales Support - for those products
product design was an important factor for requiring after sales support e.g. service
supply chain efficiency! Research estimates parts, the design of the product will have
that up to 80% of the total costs in the implications for inventory levels.
supply chain are determined at the product
design stage, but much of the focus in
Our preliminary research suggests that
design-driven companies has been on the
product design is often viewed as an
aesthetic appeal of the product and there is
activity quite separate from supply chain
general agreement that good design helps
planning and management. In such
sell products. However product design also
situations there is a danger that supply
has significant implications, across the
chain considerations will not be taken into
product life cycle, for supply chain cost, risk
account prior to product launch. Often the
and complexity. There is evidence that
organisational structure will be an
many companies are unaware of the

2. impediment to the adoption of a „holistic‟ Goals of the SIG
approach to product development e.g. the The goals of the SIG are too:
existence of well-entrenched functional
silos may impede the adoption of an „end-
to-end‟ approach. The aim of the SIG is to 1. Provide a global forum for practitioners
connect theory and practice, to help and academics in the fields of design
businesses to review processes and the and supply chain management to
issues they face when aligning product and openly share and develop research
supply chain demand decisions. It is clear ideas.
that both business and academics have a 2. Create visibility for an emerging
lot to learn about product design in the research area.
supply chain. By joining the SIG, 3. Advance knowledge in product design
businesses will have access to world- and supply chain management as well
leading expertise in addition to gaining a as developing future research
real competitive edge through their supply directions.
chain operations. After all, it has been
suggested that competition is no longer 4. To encourage benchmarking activities
between individual companies but rather and compare best practices amongst
between their supply chains. members.
5. Design decision support frameworks to
guide managers in evaluating and
Industrial Collaboration quantifying the impact of product
We aim for an active member base of 10-15 design on the supply chain.
participants that will help the steering 6. Create workshops and in-house
committee to shape and direct the research training that address areas of specific
through representation on our special concern.
interest group and the provision of access
to “real-world”; case studies, staff,
customers, supply chain partners and data. Steering Committee
Dr Omera Khan Senior Lecturer in Logistics
The main benefits to the members are: and Supply Chain Management, Hull
University Business School
Professor Martin Christopher Emeritus
Knowledge sharing at regular meetings Professor Cranfield University
and workshops hosted by the faculty.
Networking opportunities with other SIG Patrick Brown Knowledge Transfer
members. Research Associate, Hull University
Providing input that will define future Business School & Johnston of Elgin.
research objectives and priorities. Richard Faint Commercial Manager Hull
Mini projects – projects to help University Business School
understand and improve the product
and supply chain design decisions Confidentiality
Learning from other partners –
opportunity to benchmark against best Any data and information collected through
practice and the latest publication and the activities of the SIG could be made
literature reviews. anonymous and dealt with strict confidence
as specified in a confidentiality agreement.
Privileged access to new tools and
methods – tailored to company
strategy. Membership
Access to all publications/reports that
Companies keen to become a member of
are produced by the SIG.
the SIG should contact Dr Omera Khan on
o.khan@hull.ac.uk or Sam Davy on
s.davy@hull.ac.uk or 01482347524
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