Product Launch With Supply Chain: Principles to Look Out For

m product launch can be very stressful for your supply chain, especially when it has been over-extended. However, in many cases, the product might still be necessary to grow the business.

So what do you do in such a situation?

In this article, we explore the three principles or items that will help your supply chain management successfully take a new product to the market.

What are these principles?

  • Make or Buy Analysis
  • Demand Forecasting
  • Check for SKU Proliferation

If you can get these principles in place, the product launch becomes very easy for your supply chain.

1. Make or Buy Analysis

The make-or-buy analysis is a very important component of any supply chain planning because it allows for an in-depth analysis of the state of the supply chain.

Make or buy analysis helps you in determining whether or not to take on or outsource certain aspects of the supply chain operation.

When launching a product, in many cases, there are new processes that have to be undertaken. Chances are you will need to source new vendors for raw materials and services.

It is important to determine whether or not your supply chain can handle these processes. To handle it, the supply chain will need the right infrastructure and the right resources.

If these are not in place, it will be challenging to handle these processes successfully. In many cases, the lack of resources is why businesses outsource them.

It could be the warehouse or production aspect of the supply chain operations required to develop and deliver the product to the market.

When deciding on make or buy, it is important to ensure that whatever option you decide on, the necessary resources are available.

 

2. Demand Forecasting

In any product launch, it is normal to get excited or sometimes worried about the market reception of the product. This is what prompts marketing or market research.

No matter how great the product is, if there is no demand for it, your product is wasted.

On the other hand, if you have a very good product but the demand is more than you thought it would be, your supply chain will end up stressed.

It will be either trying to keep up with the demand or dropping supply to the demand level. Either way, it puts an unnecessary stress on the entire operation.

This is why demand forecasting is very important. With a good demand planning and forecasting system, you can accurately predict the demand for the new product.

Accurate forecasting enables you to prepare your supply infrastructure better to match the demands. This helps prevent overstocking or stockouts in the supply chain.

In order not to miss it, you need to determine what exactly the market wants, how they want it, and what they will pay for it. This is what informs your supply planning.

 

3. Check for SKU Proliferation

SKU proliferation occurs when the supply chain or business has too many products in its inventory and not enough are selling out.

This is typical in Africa. A business, in its bid to reach more customers and sell more products, will typically invest in many SKUs. But often, they end up with products that arenโ€™t selling as they thought they would.

The reason is usually poor forecasting or lack of research, which is typical among many small businesses. Stacking products without boundaries will only stress the supply chain.

In the case of a product launch, it is important to check the supply chain for products that are now redundant. And look for optimal ways to get rid of them.

This could be through discount sales or giveaway promotions. Getting rid of older SKUs tends to free up space, whether in the warehouse or capital invested in them.

This allows the supply chain to effectively push the new product into the market relatively easily.

Pushing a new product without consulting the supply chain management team can cause problems for the business. I see many businesses do that. Their mistake is that they donโ€™t think the supply chain can help.

They couldnโ€™t be more wrong. The three supply chain principles listed above will be useful in any product launch.

 

๐—ฃ๐˜‚๐˜€๐—ต๐—ถ๐—ป๐—ด ๐—ฎ ๐—ป๐—ฒ๐˜„ ๐—ฝ๐—ฟ๐—ผ๐—ฑ๐˜‚๐—ฐ๐˜ ๐˜„๐—ถ๐˜๐—ต๐—ผ๐˜‚๐˜ ๐—ฐ๐—ผ๐—ป๐˜€๐˜‚๐—น๐˜๐—ถ๐—ป๐—ด ๐˜๐—ต๐—ฒ ๐˜€๐˜‚๐—ฝ๐—ฝ๐—น๐˜† ๐—ฐ๐—ต๐—ฎ๐—ถ๐—ป ๐—บ๐—ฎ๐—ป๐—ฎ๐—ด๐—ฒ๐—บ๐—ฒ๐—ป๐˜ ๐˜๐—ฒ๐—ฎ๐—บ ๐—ฐ๐—ฎ๐—ป ๐—ฐ๐—ฎ๐˜‚๐˜€๐—ฒ ๐—ฎ๐—น๐—น ๐—บ๐—ฎ๐—ป๐—ป๐—ฒ๐—ฟ ๐—ผ๐—ณ ๐—ฝ๐—ฟ๐—ผ๐—ฏ๐—น๐—ฒ๐—บ๐˜€ ๐—ณ๐—ผ๐—ฟ ๐˜๐—ต๐—ฒ ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€. ๐—œ ๐˜€๐—ฒ๐—ฒ ๐—บ๐—ฎ๐—ป๐˜† ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€๐—ฒ๐˜€ ๐—ฑ๐—ผ ๐˜๐—ต๐—ฎ๐˜. ๐—ง๐—ต๐—ฒ ๐—บ๐—ถ๐˜€๐˜๐—ฎ๐—ธ๐—ฒ ๐˜๐—ต๐—ฒ๐˜† ๐—บ๐—ฎ๐—ธ๐—ฒ ๐—ถ๐˜€ ๐˜๐—ต๐—ฎ๐˜ ๐˜๐—ต๐—ฒ๐˜† ๐—ฑ๐—ผ๐—ปโ€™๐˜ ๐˜๐—ต๐—ถ๐—ป๐—ธ ๐˜๐—ต๐—ฒ ๐˜€๐˜‚๐—ฝ๐—ฝ๐—น๐˜† ๐—ฐ๐—ต๐—ฎ๐—ถ๐—ป ๐—ฐ๐—ฎ๐—ป ๐—ต๐—ฒ๐—น๐—ฝ.

๐—ง๐—ต๐—ฒ๐˜† ๐—ฐ๐—ผ๐˜‚๐—น๐—ฑ๐—ปโ€™๐˜ ๐—ฏ๐—ฒ ๐—บ๐—ผ๐—ฟ๐—ฒ ๐˜„๐—ฟ๐—ผ๐—ป๐—ด. ๐—ง๐—ต๐—ฒ ๐˜๐—ต๐—ฟ๐—ฒ๐—ฒ ๐˜€๐˜‚๐—ฝ๐—ฝ๐—น๐˜† ๐—ฐ๐—ต๐—ฎ๐—ถ๐—ป ๐—ฝ๐—ฟ๐—ถ๐—ป๐—ฐ๐—ถ๐—ฝ๐—น๐—ฒ๐˜€ ๐—น๐—ถ๐˜€๐˜๐—ฒ๐—ฑ ๐—ฎ๐—ฏ๐—ผ๐˜ƒ๐—ฒ ๐˜„๐—ถ๐—น๐—น ๐—ฐ๐—ผ๐—บ๐—ฒ ๐—ถ๐—ป ๐—ต๐—ฎ๐—ป๐—ฑ๐˜† ๐—ถ๐—ป ๐—ฎ๐—ป๐˜† ๐—ฝ๐—ฟ๐—ผ๐—ฑ๐˜‚๐—ฐ๐˜ ๐—น๐—ฎ๐˜‚๐—ป๐—ฐ๐—ต.