Coordinating the Introduction of Your New Product
It's been said that timing is everything, and for new production introduction (NPI) processes, this couldn't be truer.
Managing the supply chain as new products are introduced can become quite a juggling act, where the risk of dropping the ball is high. In such a globally competitive environment, seizing market share is critical to your business plan. With any slip to a product release plan, you risk losing business to your competition, missing earnings forecasts and degrading your stock price.
The dizzying pace of product introductions and the uncertainty inherent with the NPI process creates operational variability that can be hard to predict and even harder to respond to. Staying on top of things requires the ability to model multiple product launch scenarios and apply appropriate risk mitigation strategies, as well as closely linking your project plan milestones to your supply chain.
By integrating demand planning, supply network management, project management, and material planning, a control tower solution using RapidResponse® supports participants of the NPI process, by enabling them to:
- Conduct instant "what-if" analysis, to evaluate multiple launch curves and forecasts to understand the impact on revenue, margin, manufacturing and the supply chain
- Model a pseudo NPI part and BOM structure in a scenario for operational analysis prior to the NPI launch
- Leverage statistical forecasting by referencing an existing part and applying NPI ramp profiles
- Generate a consensus forecast using marketing, sales and statistical forecast reference input
- Leverage integrated project management resources to monitor milestone achievements and keep the NPI launch on track despite ever-changing demand and supply variables
- Ensure alignment with the supply plan throughout the NPI launch
- Incorporate the NPI launch into the S&OP cycle to synchronize decisions and actions
- Release new products on schedule and on budget
- Capture market share and maximize revenue opportunities
- Proactive planning of project plan, unit and revenue forecast, as well as material and capacity requirements
- Immediate notification of risk to the project plan
- Continuous alignment of demand, supply, operational and financial objectives