The NPI and product exit process is critical, but often lacks control, discipline and involvement of the right people with the right capabilities at the right time. Finding the balance between a robust project management approach and not inhibiting the time to market is key.

In a sector where a high quantity of retailer-specific products are produced alongside branded products, it is vital to maintain an accurate view on the cost-to-produce and to serve, to avoid unintentional cross-subsidisation.

There is a danger that where multiple own-label customers exist, multiple NPD processes then evolve alongside them. This drives risk into the upstream and downstream supply chain as both internal stakeholders and suppliers become confused.

Effective engagement with suppliers and access to their innovation is an essential input to future product design which drives advantage in a crowded market.

High-churn product environments require PILM agility. Companies who are quick to identify and react to new trends lead the market.

Focus is more often on product introduction than exit – control of exiting products and materials is frequently lost, driving high obsolescence costs into the business.

Client successes

  • Streamlined global NPD processes for an international wine company, embedding these into a monthly planning cycle and instilling equal discipline to exit plans as entrances.
  • Created a disciplined approach to developing new labels for a global drinks company with a high product churn, so that suppliers could supply on time and cost-effectively. Reduced lead time by 30%.
  • Developed a full product profitability model to enable NPD to understand the relationships between product variant costs and launch volumes.

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