Engaging with ‘Engineer for Supply Chain’ (EfSC): insights from two engineer-to-order manufacturers

Abstract

The practice of ‘Design for Supply Chain’ (DfSC) aims at integrating strategic sourcing into manufacturers’ new product development (NPD) processes. The literature on this topic, however, mainly focuses on contexts involving high-volume, standardised products, while the engineer-to-order (ETO) context has received only limited attention. As argued in this paper, this constitutes a gap in the literature since the findings from high-volume, standardised contexts may not be directly applicable to the ETO context. To support this claim, a case study approach is used to explore DfSC in two ETO manufacturers. This paper terms this practice ‘Engineer for Supply Chain’ (EfSC) and identifies four dimensions that it comprises: (1) consideration of strategic sourcing in NPD, (2) representation of the sourcing function in NPD, (3) collaboration between the R&D and sourcing functions, and (4) adoption of methods for considering strategic sourcing in NPD. Although these dimensions partly overlap with the literature on DfSC, the characteristics of EfSC differ—most notably by requiring the consideration of strategic sourcing before the product design stage of NPD, as well as procedures that encourage this consideration. Finally, the study identifies relationships among the dimensions and develops a holistic four-step process for engaging with EfSC.