The possible forms of supplier integration can be framed within the context of the "generic" new product development

process. The new product development process is a series of interdependent, often overlapping stages during which a new product (or process or service) is brought from the idea stage to readiness for full-scale production or service delivery. As the product concept moves through these stages, the idea is refined and evaluated for business and technical feasibility, the initial design is established, prototyping and testing are done, the design is finalized, and preparations for full-scale operations (tooling, layout, personnel, equipment, etc.) are completed. During this process, issues relating to cost, performance, timing, quality, and others, which result in tradeoffs and changes in the design are addressed. The design may be modified numerous times before it is finalized.

The degree of supplier integration in new product development can range from having no supplier involvement to a "Black Box" approach, where the supplier provides its own design without the involvement of the buying organization. In between are the "White Box" and the "Gray Box" stages. A "White Box" occurs when the supplier is brought in on an ad hoc basis, and acts as a consultant to the buyer's new product development team. This is largely an informal meeting, occurring only as needed. The "Gray Box" approach is more formal: joint development activities such as joint design, prototype manufacture, and testing occurs between the buyer and supplier. In the "Black Box" approach, the supplier is formally empowered to design the component based on the buyer's performance specifications. In this type of approach, a high degree of trust typically exists between buyer and supplier, as the buyer relies on the supplier to design and manufacture an entire subassembly or module that will "fit" into their primary new product or service.