Supply chain management has become the area of high significance for the organizations. It emphasizes the customer oriented approach where the organization fulfills the needs and requirements of the customer by integration and collaboration. When talking about innovation, what is more important is “achieving the results of that innovation, according to the standards of your clients, internal employees, or suppliers” (Harps, 2006). Innovation is being driven by direct input from the customers these days; the emerging era is of innovation that is demand-driven. The crucial part is played by supply chain as it needs not only be cost-effective but also highly-responsive to the needs of the customers and the lead time must be minimum (Didonet & D’iaz, 2012). By using the supply chain strategy, the success of the product is sustained in the marketplace. By integrating the functions across the supply chain, the companies tend to develop creative solutions; with collaboration of the trading partners, time replenishment has been ensured between sales and production. In order to innovate based on demand, the supply chain managers collaborate with the designers, marketers, salespeople, product servicers and even the downstream partners on continuous basis (Soosay & Hyl et al., 2008). While the product is in the pipeline, the personnel from the supply chain, marketing and the R&D must meet weekly and communicate openly to discuss the direction of the development. In order to address the needs of the customers and optimize relation with the customers, the value chain relationships are required by the businesses. The partners within the value chain process, collaborate together through the whole process of innovation; with this process, the value chain of the company is extended to reach new customers. Leveraging the relationships throughout the value chain is highly critical to innovate; these relationships are the only point of differentiation for the business that can help the organization to achieve the sustained competitive edge over its rivals and to retain the customers (Hammervoll, 2009).
References
Didonet, S. R. & D'iaz, G. (2012). Supply Chain Management Practices as a Support to Innovation in SMEs. Journal of Technology Management & Innovation, 7 (3), pp. 91--109.
Hammervoll, T. (2009). Value-creation logic in supply chain relationships. Journal of Business-To-Business Marketing, 16 (3), pp. 220--241.
Harps, L. H. (2006). Innovation: A Fresh Eye on the Supply Chain. [online] Retrieved from: http://www.inboundlogistics.com/cms/article/innovation-a-fresh-eye-on-the-supply-chain/ [Accessed: 7 Apr 2014].
Soosay, C. A., Hyl & Ferrer, M. (2008). Supply chain collaboration: capabilities for continuous innovation. Supply Chain Management: An International Journal, 13 (2), pp. 160--169.
