CASE STUDY
Product Sales Ready
Most companies have highly motivated and creative R&D departments who can actually turn their ideas into superb prototypes. However, after initial internal and external enthusiasm, the excitement often fizzles out and after a year, the sales numbers are not matching the initial expectations.
The solution can be to put a formal process in place, stipulating a certain rigour ensuring that products are truly ready for sale, before they leave the company. Creative R&D department are not always best placed to deliver sales ready and working with experts and partners familiar with the innovation process can significantly enhance progress.
For example, we helped an innovative smaller company to get internally ready to launch their new product. As part of a bigger NPD project, we reviewed the interactions between R&D and sales teams.
Problem:
We have great prototypes, but they are tricky to get out of R&D
Solution:
Formalise getting new products sales ready
Action
We focussed on two aspects, first on the required documentation and also on sampling. We ensured that prior to presenting samples or prototypes, critical product documentation was drafted, checked and signed off. This included documenting product specifications, including ingredients, production methods, and quality standards. In addition, we brought in an external expert who ensure the documents demonstrating that the product meets all relevant regulatory requirements and industry standards were in place.
A much more practical aspect was how to deal with samples and prototypes. Historically these were made to order, i.e. a sample request was issued by sales after a customer visit, requiring to meet customer deadlines.
Based on a rough schedule of sales calls we initiated the production of high-quality samples that accurately represent the final product and introduced keeping a base stock quantity of them. Stock levels were monitored by R&D. We also reviewed the method for dispatching samples to potential buyers, partners and stakeholders and improved the workflow.
Result
Both sales and R&D became significantly more efficient as sample production was scheduled in advance to fit existing schedules and sales could draw on samples almost instantly, instead of experiencing significant lead times. The R&D team was able to schedule sample and prototype production in advance and estimate roughly a time saving of 25%-30% quicker turnaround time.
The tangible benefits included faster market entry by seamlessly dealing with customer enquiries, resulting in obtaining orders earlier. Plus, an image improvement as being seen as a capable innovator, instead of showing ideas.
The change implemented for the specific NPD project has now been formalised as a best practise for all new products, recognising that the past practise was suitable for product improvements and line extensions, but not for genuinely new product.