Drivers extended product design

Table 3.1 presents a working definition of each driver. Figure 3.1 models the connections among them. Innovation, in Figure 3.1, pushes the whole process forward, so we place it first in our sequence. Innovation is external to the supply chain system. It pushes supply chain participants to continuously improve their chains. The three drivers — Extended Product Design, Globalization, and Flexibility Imperative — shape the direction, scope, and form of products and services and the supply chains needed to deliver them. 

Figure 3.1 illustrates how product or process innovations feed the next SCM driver, extended product design. We introduced the idea behind extended products in Chapter 1. Our supply chain definition, also in Chapter 1, describes the supply chain as physical, information, financial, and knowledge flows for moving products and services from suppliers to end-users. This includes a lot of services, which accompany their base, or physical, products. 

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