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There are many challenges that face companies today in the new product introduction process. These may
include reduced design times, fast times to market, improved quality and the need for constant price reductions
in order to keep up with the competition. Contract manufacturing firms face even more challenges because of
the "build to order" way that they must do business.

The dramatic changes in consumption and consumer patterns together with the growth of international mega
brand products have put heavy pressure on industry to change its way of doing business, especially its New
Product Development (NPD). Strategies such as transfer, merger, acquisition and collaboration are becoming
the growing trend nowadays. The success of new products depends mostly on the new product development
process and management. Factors which affect the industry are related to the types of new product development,
R&D organization, the R&D and marketing interface related to new product development and nature of the
business

#$!: Motorola suffered several financial losses due to the failure of their satellite phone
(iridium),which was completely rejected by the market. However, organizations need to invest their efforts and
resources for developing new products. Due to which the average age of the product continues to be on
decline,as customers demand new and better products and competitors keep coming up with improved
products. Marketing strategies adopted by the firm can also affect the performance of the new product.

Some companies have been highly innovative. For example 3M (Minnesota Mining and Manufacturing) has
been termed as the most innovative company. As companies are entering into different markets due ti
liberalization of economics, saturation of markets, etc. they need to modify their products or develop new
products that suit the taste and preference of those markets.

Contract manufacturing firms face many of the same challenges as other companies in the product development
process. Additionally, there is the added challenge of not having complete design control and having many of
the early decisions already made by a potential customer. In authors' opinion, the key is even more careful
management of the fuzzy front end to ensure success. The use of modern technology such as CAD(Computer
Aided Design)/CAM and the Internet can be a method for some companies to better manage the front end and
work more closely with customers to have their design concerns addressed early in the customer's process.
Parallel activities and proper staffing also are critical to a successful product launch. Effective communication is
the key element in all these activities and co-location of people working on the project is a key way to foster
this communication.

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An important prelude to internationalization research has been work on intangibility, perishability, and
inseparability as features that appear to distinguish sharply services from products (Zeithaml et al., 1985). In
international business, it is primarily these characteristics that seem to engender the use of local production and
joint ventures as the primary channels by which services are marketed overseas .International services are
defined as ``deeds, performances, efforts, conducted across national boundaries in critical contact with foreign
cultures'' (Clark et al., 1996, p. 15). Unlike physical, tangible goods, services are usually regarded as
performances (e.g. legal services) or experiences (e.g.spectator sports or live theater), which may be equipment
based (e.g.telecommunications, radio, TV) or people based (e.g. management consulting) Services entail unique
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features that distinguish them from manufactured goods. First, they are largely intangible and cannot be
touched, transported, or stored. Second, services tend to be inseparable, that is, production usually cannot be
separated from consumption. Third, services are perishable, meaning that they must usually be consumed at the
time they are produced, or they will be lost. Finally, services are highly heterogeneous in the sense that, unlike
products, no one service performance is identical to another. Each service encounter is unique and often highly
customized .At its simplest level, international marketing involves the firm in making one or more marketing
mix decisions across national boundaries. At its most complex level, it involves the firm in establishing
manufacturing facilities overseas and coordinating marketing strategies across the globe.
The intangible, perishable, heterogeneous, inseparable and culturally sensitive aspects of services are all likely
to pose special problems as scholars attempt to define and operationalize appropriate constructs and construct
measure.

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 is a term that refers to many different methods of soliciting and/or selling products or services at a
distance, where the potential customer is not physically present at a store or other location to make a purchase
or to place an order. The mail order customer learns of and views an item and its description through one or
more types of media, either print or electronic, including catalog, direct mail, electronic catalog, website, email,
television, radio, magazine, newspaper, and others.

A crucial characteristic of r
 advertising or promotion is that the marketing produces a measurable
response and at the same time captures important customer information that can be used to further expand sales
opportunities. Ê
 is a marketing term that encompasses many other verbal descriptions and
sales/marketing terms such as direct marketing, direct mail, Internet or Web marketing, catalog marketing, data
base marketing, direct response marketing, television marketing, infomercial marketing, and niche marketing.

Another key characteristic of r
 is that the order is placed remotely. The order from a customer may be
received by the seller through telephone, mail, fax, electronic shopping cart, or email. Neither the method of
reply nor ordering really matters; the single characteristic of all mail order is that the customer is not physically
present when placing the order. Finally, fulfillment of physical goods ordered via r
 is done by delivery
through a common carrier such as the United States Post Office, United Parcel Service, FedEx, and others. In
the case of electronic products or services, delivery can occur via telephone, fax, the Web, or email. Mail order
marketing is a marketing tool which comprises activities such as direct mail, telemarketing, mail order, direct
response advertising and email marketing.

Mail order marketing provides a unique range of benefits because it enables you to engage directly with your
audience - whether they are prospects, leads, end users or existing customers.

Other advantages of mail order marketing include:

#$&: Direct marketing enables you to talk directly identify, isolate and communicate with well-
defined target markets. This means you get a higher conversion and success rate than if you tried
communicating to everyone in the mass market. And is also far cheaper than mass market communication.

Ê*: Direct marketing doesn¶t just have to be used to sell - it can be used to test new markets and
trial new products or customers, to reward existing customers to build loyalty, collect information for future
campaigns, or segment a customer base.

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'' : The cost per acquisition of direct mail can be significantly less than other marketing
methods. Plus once you¶ve acquired a customer, you can also benefit from highly profitable repeat sales, gained
once again through direct marketing methods.

'Ê!: It provides greater control and accountability than other marketing methods. It is easy
to measure results because you know exactly how many people you¶ve contacted in the first place.

 +, It is both swift and flexible in achieving results. This is especially true for telemarketing, one
of the direct marketing tools, as the results of a conversation can be logged immediately and scripts adjusted
straight away to improve results.

&+: Mail order marketing allows you to test, test and test again in order to hit upon the most
successful combination of direct marketing tools. Any of these variables such as timing, list, message, mailer
and offer can be adjusted, tested again, and measured to find the optimum direct marketing proposition.

-: It is far more effective at initiating and developing a meaningful dialogue with new
customers. From the outset you have a direct relationship with them, which can also be used as part of a push
pull strategy to stimulate demand for retailers.

'Ê: Direct marketing can enable you to target different messages to different recipients.
Using technology such as digital printing, it¶s even possible to display different images, designs and offers in a
direct mailer according to who it¶s being sent to, as well as personalizing the mailer to the recipient to increase
conversion rates.

,Direct marketing can be used for any level of geographic targeting, whether it¶s the
local area surrounding a shop or restaurant, regional targeting by postcode or county, national targeting and
even international - when direct marketing can prove a far cheaper way of testing the market than a costly
personal sales visit.

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Transport or transportation is the movement of people and goods from one location to another. Transport is
performed by various modes, such as air, rail, road, water, cable, pipeline and space. The field can be divided
into infrastructure, vehicles, and operations.

As competition has intensified over the years, and companies are expanding their operations globally,
transportation has become a vital function in the logistics process of an organization. Transportation is a process
involving space and time dimensions that enhance the value of the logistics process by delivering the goods at
the right time and at the right place.

Tran system, a logistics operator, ensures that its operations exactly match the standards of Toyota. Transporters
need to adapt to the changing market needs if they want to stay ahead of the competition. Their focus should not
only on transporting goods, but also on meeting customer needs effectively. Some transporters focus on
leveraging competitive advantage by providing warehousing facilities, logistics consulting and so on.
Transporters offering such non-transporters facilities apart from their regular services can become strategic
partners and eventually, a source of competitive advantage to companies. Efficient transporters must have a

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long term commitment and an inclination towards open communication and mutual sharing of information.
They need to be cooperative with the firm and pursue total quality improvement on a continuous basis. Finally,
efficient transporters should be inclined to share the risks and rewards, which come in the process of their
relationship with the firm.

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A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers,
exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial
areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes
warehouses load and unload goods directly from railways, airports, or seaports. They often have cranes and
forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.
Some of the most common warehouse storage systems are:
‡ Pallet rack including selective, drive-in, drive-thru, double-deep, pushback, and gravity flow
‡ Mezzanine including structural roll formed, rack supported, and shelf supported

‡ Cantilever Rack including structural and roll formed

‡ Industrial Shelving including metal, steel, wire, and catwalk
‡ Automated Storage and Retrieval System (ASRS) including vertical carousels, vertical lift modules,
horizontal carousels, robotics, mini loads, and compact 3D

Major warehousing processes include:

‡ Receiving
‡ Put away
‡ Order preparation / picking
‡ Shipping
‡ Inventory management (cycle counting, addressing...)

Warehouses frequently provide services, such as:

‡ Co-packing
‡ Kitting 

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Inventory management is the active control program which allows the management of sales, purchases and
payments.

Inventory management software helps create invoices, purchase orders, receiving lists, payment receipts and
can print bar coded labels. An inventory management software system configured to your warehouse, retail or
product line will help to create revenue for your company. The Inventory Management will control operating
costs and provide better understanding. We are your source for inventory management information, inventory
management software and tools.

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A complete Inventory Management Control system contains the following components:

a‘ Inventory Management Definition

a‘ Inventory Management Terms
a‘ Inventory Management Purposes
a‘ Definition and Objectives for Inventory Management
a‘ Organizational Hierarchy of Inventory Management
a‘ Inventory Management Planning
a‘ Inventory Management Controls for Inventory
a‘ Determining Inventory Management Stock Levels

Inventory Management is the planning, control, organizing and leading the goods and materials required by the
business.
Inventory Management is very important for the business. It enables the business to meet or exceed
expectations of the customer by making the product readily available.
Inventory Management and Inventory Control must be designed to !'!(
!+4. The many changes in market demand, new opportunities due to
worldwide marketing, global sourcing of materials, and new manufacturing technology, means many companies
need to change their Inventory Management approach and change the process for Inventory Control.

Despite the many changes that companies go through, the basic principles of Inventory Management and
Inventory Control remain the same. Some of the new approaches and techniques are wrapped in new
terminology, but the +'! +Ê! +
  . The Inventory Management system and the Inventory Control Process provides
information to efficiently manage the ''!, effectively 56!/
 /!!!. Inventory Management and the activities of Inventory
Control do not make decisions or manage operations; they provide the information to Managers who make
!!+ decisions to manage their operations.

The basic building blocks for the Inventory Management system and Inventory Control activities are:
# or Demand Management
) Planning
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The emphases on each area will vary depending on the company and how it operates, and what requirements are
placed on it due to market demands. Each of the areas above will &!'!
 '! of Inventory Management and Inventory Control.

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