New Product Introductions
Speed time to market, minimize risks, and predict service performance for new products
Supply Chain Design: Your Unfair Advantage for New Product Introductions
New product introduction (NPI) analysis streamlines and optimizes the process of bringing new products to market. It works by modeling the new products into the existing supply chain structure and observing their impact on the supply chain’s overall throughput, their ability to deliver on established levels, and to fulfill the new product demand and prescribed on-time in-full (OTIF) requirements.
Use New Product Introduction Simulations to Answer Questions Like:
Should we open a new facility to support the new product or allocate existing capacity?
Should we source the new product from one facility for all customers, or should we use multiple distribution facilities?
How will each supplier’s procurement policies impact transportation costs and service levels?
Speed Up Time to Market
Streamline the product development process by generating a multitude of scenarios and associated models that help visualize and test product ideas in the pre-development stage.
What-if scenarios help supply chain designers capitalize on market opportunities, validate products, and reduce time to revenue. They can also be used to identify potential manufacturing process delays, resource constraints, and engineering challenges and develop the best production strategies to optimize time to market.
Assess Market Viability
New product introduction simulations can model different market scenarios according to factors like demand fluctuation, competitor actions, and economic trends. The models can be used to assess the viability of introducing the new product to different market segments and regions.
Simulation helps optimize pricing decisions according to market research and competitive factors. Models can be created to evaluate various pricing strategies and their potential impact on demand, revenue, and profitability.
Predict and Assess New Product Introduction Impact
Models can also simulate how the introduction of the new product affects the overall product portfolio and roadmap. This helps identify potential conflicts, resource constraints, and opportunities for synergy within the product catalog. NPI software can also predict the potential life cycle of the new product by assessing its relevance under different market trends.
Cosmic Frog Analyzes 1000s of Future-State Supply Chain Scenarios in Minutes
Watch a 5-minute demo of Cosmic Frog
“What happens if this node goes down? What happens if this gets delayed? What if… We can set that framework now — with Optilogic we have the ability to look at scenarios at a granular level.”
Eric Sobanski
SVP Operations,
Peco Pallet
Use Cosmic Frog at Each Stage in the NPI Process:
Implementing supply chain design scenarios into the NPI process helps supply chain analysts make more informed decisions, minimize risks, and streamline the introduction of new products. Cosmic Frog users can run many optimization and simulation models in parallel to rapidly compare product transitions and enhance overall strategic NPI process planning.
Cosmic Frog New Product Introduction Features
Intelligent Greenfield Analysis
Cosmic Frog’s Intelligent Greenfield engine enables you to assess the high-level structure of your network’s manufacturing processes, identify the best locations for distribution centers, and make optimized sourcing decisions for your customers. This results in minimized fixed and variable costs for each facility, while still respecting capacity and service level constraints.
Example of a Greenfield study with a new product (orange) being sourced from two facilities:
Supply Chain Network Design
Cosmic Frog’s feature-rich network optimization engine produces a hyper-detailed model of how your supply chain will respond to new product introductions. Use this tool to explore questions like:
- What production process should we use?
- How will the new product impact the existing production line?
- How will different packaging sizes impact development cost, transportation cost, and work center capacity?
- Where should we stock inventory for the new product?
- How will various new product inventory policies impact inventory levels throughout our network?
- How will new products impact cost to serve and profitability for every product line and customer segment?
Supply Chain Simulation
Cosmic Frog’s discrete-event simulation engine produces a highly reliable representation of your network’s reaction to new product introductions by considering how supply chain elements interact at a granular level. Simulation also accounts for variability in your data and provides statistical metrics for your predefined KPIs.
How it works:
- Feed a probabilistic demand forecast into your model and analyze expected outcomes via KPIs like cost, lead time, and service level.
- If no probabilistic forecast is available, use a point forecast and add symmetric variability (like triangular or normal), then analyze the expected results.
- Alternatively, use the point forecast and lock certain decisions like sourcing or inventory, then vary demand systemically or stochastically to visualize how your network reacts to changes across the various scenarios. This approach helps validate the forecast for new products that lack data.
- You can also add congestion to your network to measure the impact of queuing on product and transportation times.
