New Product Development Processes in The Australian FMCG Industry

Abstract

This paper presents a study of new product development (NPD) processes in two large Australian organisations (National Foods and Lion Nathan) involved in the production of fast moving consumer goods. The research utilises the Australian Business Excellence Framework as a research lens for exploring NPD processes with a focus on the role of sales and operations management. A case study approach used data collected from employees in the two organisations who were involved the NPD process. The results showed a number of significant differences between the two organisations in the conduct and the effectiveness of their NPD processes. Although both organisations employed a formal Stage-Gate process, Lion Nathan did this more successfully than National Foods, perhaps because of Lion Nathan’s greater experience with using stage-gate methodology. This study highlights the importance of the role of sales and operation planning, especially in relation to collaborative demand forecasting. The importance of the leadership role was also evident particularly in relation to ensuring measurement, review, and improvement of NPD processes. Keywords: New Product Development, Sales and Operations Planning, Stage-Gate, ERP, FMCG To cite this document: Douglas Davis, John Chelliah, and Sam Minter, "New Product Development Processes in The Australian FMCG Industry", Contemporary Management Research, Vol.10, No.1, pp.3-22, 2014. Permanent link to this document: http://dx.doi.org/10.7903/cmr.11739