Thorsten Leupold discussed the importance of stronger links between R&D and procurement

09.12.2024
Thorsten Leupold discussed the importance of stronger links between R&D and procurement
In most of SuP’s projects a disconnect between R&D and procurement is a key issue where efficient innovation can fail. If a supplier develops a new product and wants to discuss it with a (potential) customer, R&D might see the benefit of the innovation, but procurement only sees the higher price. On the other hand, there are cases where R&D is excited, but the product is commercially not beneficial.
At the Foam and Adhesive Bonding Expo 2024 in Stuttgart, Thorsten Leupold discussed with the panelists Hamideh Ahmadloo from Sika, Ilya Ivkin from Emma Mattresses and Thorsten Suess from NBHX how important stronger links between R&D and procurement are and how to implement them.

A key solution to align product innovation and commercial benefits is building cross-functional teams to jointly evaluate new product ideas from its suppliers. Additionally, implementing KPIs that align the targets of both departments is crucial as the goals of R&D and procurement can be contradicting. A well-known example is the target to reduce product carbon footprint, which needs to be a KPI for both R&D and procurement. Reach out to Schlegel und Partner to learn more about the topic.