b 30–50 percent reduction in capital and working
Implementing PLCM across the supply chain
assets needed to launch new products
b 10–15 percent reduction in overall supply chain
The research revealed similarities in the process
these benchmark firms are using to engage their
supply chain organizations in implementing PLCM.
The following section summarizes this process and
provides examples from those firms.
Managing across platforms—the integrated systems
of design, development, and supply chain for families
of products and services—provides organizations with
a strategy for innovating while reducing market-re-
sponse time and resource commitment. It does this
by enabling different offerings and their associated
brands to share design features, marketing and adver-
tising, and supply chains.
The principal way platform management helps
organizations find synergies across the value chain
is through simplification and standardization.
Simplification is achieved by driving out aspects of
product design and processes that do not deliver value
to the customer. This facilitates more readily standardized processes and components, equipment, and
packaging, thus enabling volume leverage and quicker response to market. One of our sample firms, for
example, has utilized PLCM to leverage new-product
innovation to drive revenue gains while simplifying
its product portfolio and streamlining manufacturing
and procurement. The resultant reduction in complexity is expected to generate a 15 percent improvement in its cost position that will translate to positive