New Product Introduction—Feast Or Famine?

new PRoDuCt IntRoDuCtIon— FeASt oR FAMIne? By Ron Burnette ith new product introductions w(NPIs), consumers rejoice and marketing generates the buzz, but supply chain executives shudder. In today’s ever-changing economy, one thing is constant—the ever increasing pace of new products hitting the retailer’s shelves. As companies struggle to grow market share or, at a minimum, maintain existing share, the introduction of the newest products is a proven method of achieving it. For consumers, NPIs are exciting, but for manufacturers and retailers it is all about competing for business, and at what cost? In a recent study by AMR Research, which specializes in supply chain practices, 32% of the participants believed that products reaching the market late is the key reason for new product launch failure. Other reasons include product pricing, quality, and missing customer needs. So how can supply chain executives improve customer satisfaction? In the last few years, a number of innovative techniques have been introduced by leading industry analysts and supply chain solution providers to help manufacturers and retailers improve the process and increase the success of launching ...