Step 6.3

Finalize distribution logistics.

Primary findings

Methods

A plan for getting to market and knowing who approves purchases of such new products is critical early in the project and again downstream. This avoids dead time between then the product is available to order and when the customers start buying it. Understand how customers make purchasing decisions, and know any required demonstration periods and projected conversion rates.
Conclusions drawn from case studies and experience.
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Designing Storage Facilities — storage and warehouse facilities involve processing of raw materials, semi-finished components and finished goods. The tasks include receiving, inspecting, storage, packaging, labeling and shipping. They consider these factors: — Physical similarity — items with similar characteristics are grouped together; — Functional similarity — functionally-related items are grouped together; — Popularity — frequency with which items are stored, accessed or retrieved. — Reserve stock separation — keeping reserve supplies apart form working stock.
Authors experience in industrial engineering, physical medicine and rehabilitation, and as Editor-in-Chief of the International Journal of Industrial Engineering.
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Performance Drivers: One is the Quality of Execution. Eight activities distinguish best from worse performers: 1) Conducting a post-launch review (8.2); 2) Assessment of product's value to business (2.1); 3) Test market or trial sell to a limited set of customers (7.13); 4) Concept testing to determine customer reaction to product and gauging purchase intent before Development begins (4.11); 5) Idea Generation (1.3); 6) Customer tests of products under real-life conditions (6.3); 7) Detailed market study/research or Voice of the Customer (4.3, 4.13); 8) Pre-launch business analysis (7.7, 7.8, 7.9).
A quantitative survey of 105 business units, supported by team's experience in NPD modeling, consultation, application and analysis.
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Tips

Product launches into international markets often schedules sequence of launches into the various markets, because of supply limitations, regulatory differences, and the variation in drivers within each market segment.
Conclusions drawn from case studies and experience.
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 Initiate production and launch product.

Primary findings

Models

Distribution of collaboration during the Product Launch Planning stage was manufacturer involvement (100%), user involvement (46%) and third-party involvement (69%).
Case study of seventeen medical equipment innovations marketed by 13 Dutch firms.
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Methods

Create and maintain high levels of integration between Marketing and Research & Development functions and product prototype development, product launch and cycle times will all have increased proficiency. Market forecast accuracy and technological core competency fit will also be improved with function integration. Be sure to implement integration at step 4.1.
Survey. A multiple regression analysis revealed significance between integration and: product prototype development proficiency (F=70.80); product launch proficiency (F=122.74); product development cycle time (F=13.84), market forecast accuracy (F=75.65); and technological core competency fit (F=39.64), all interactions significant at the p<.001 level.
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Designing Storage Facilities — storage and warehouse facilities involve processing of raw materials, semi-finished components and finished goods. The tasks include receiving, inspecting, storage, packaging, labeling and shipping. They consider these factors: — Physical similarity — items with similar characteristics are grouped together; — Functional similarity — functionally-related items are grouped together; — Popularity — frequency with which items are stored, accessed or retrieved. — Reserve stock separation — keeping reserve supplies apart form working stock.
Authors experience in industrial engineering, physical medicine and rehabilitation, and as Editor-in-Chief of the International Journal of Industrial Engineering.
(View full citation)

Develop and offer training programs
Survey.
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Have technical NPD team member present during sales presentations
Survey.
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Secondary findings

Carriers

Launch Activities: Timing of the market launch is important to success or failure, due to competing products or market conditions.
Source: Cooper (1983). In: Calantone, R.J., diBenedetto, C.A. (1988)