New Product Sourcing – Now?
“If you’re not growing, you’re dying…“
It is an old adage, that most savvy CEO’s are familiar with.
New products and continual existing product development are the lifeblood of organisations who wish to continue to drive forward. Bringing new products to your local market is one of the best ways to gain new customers and invigorate a tiring existing customer base.
Real opportunity exists to steal a march on the competition, especially considering the Covid situation, where supply chains are being stifled and traditional processes are failing.
Regardless of the myths and impressions to the contrary, the process involved in delivering a new product does not need to be overly confusing, technical and complex.
It is an important to understand that the definition of a new product depends on ones perspective. It does not have to be a brand-new invention that previously did not exist anywhere in the world. New “inventions” of this type are often swamped in patents and years of prohibitively expensive development.
Conversely a new product can be defined as something that already exists, however is new to a specific market or client base. From that perspective it is a new addition that adds additional value and functionality that is often met with excitement and understanding from a specific set of clients or market place.
There are many fantastic products already available where the bulk of the time consuming and expensive technical development has already been completed. With some minor adjustments these products can be packaged and sold cost effectively to different markets or in different ways. Often referred to as “white labelling”, with the right professional help cutting through the jargon, it can be a straight forward and highly rewarding experience.
- Defining the overall strategy for your new product – The “roadmap”
- Do some in depth market research alongside instinctual, experience-based appraisal.
- Locate and undertake detailed audit of suppliers (often in the Far East).
- Define the specification, technical and cosmetic detail.
- Agreement of commercial terms and contracts
- Ensure compliance and gain the necessary technical approvals.
- Define the route to market and set sales pricing policies.
- Defining and implement a local marketing strategy.
- Logistics and Import/ Export controls
- Ongoing liaison and QC with manufacturers
- Ongoing purchase pricing negotiation
- Providing needed commercial and technical support
- Analysing “run rates” and maintaining appropriate stock levels.
- Managing any warranty commercials.
- Concurrently be preparing the next development or product for market (version 2.1 etc.)
Stephen J Dandy – Oct 2020