Adapting
a popular book title, it has been said, "it takes a
village to bring a new product to market", and most
company structures will verify that. Their
"village" consists of market research people to
assure a product is needed and will be well received by
consumers; research & development (R&D) people to
design the product, and to make certain it will work
correctly; marketing people to assure the product is
represented properly and thoroughly; sales people to sell
and distribute the item to as many consumers as possible;
finance people to control the cost, profit, and cash flow
of the venture; operations people to locate the proper
manufacturers, negotiate the price, and make certain the
product is mass-produced correctly and on time.
Acting as an R&D department, you have just designed
a great new consumer product. It is, truly, the best item
ever invented. All of your closest friends and confidants
concur it will be a best seller. Now you need it
duplicated-- 1000, 5000, or 100,000 times. This seems
simple enough; there are many manufactures out there who
are capable--just read their ads. But how you choose the
right one? Acting now as the "operations
department", how can you be certain the manufacturer
you choose will mass-produce your product to your
expectations?
The first and most important step in assuring your
product is manufactured correctly is to finalize exactly
"what" you need. Be certain your product is
completely developed, and all of the details written down
with (at least) a rough dimensional drawing. Once the
"what" is finalized, it will be easy to find
manufacturers to assist you with "how" it should
be mass-produced.
The details should include:
- The product itself
: components, finishes, etc.
Remember that a picture or a physical sample is more
effective than words in conveying your needs. Look for
similar colors, finishes, or textures in existing
product, so you can "show" the manufacturer
what you are trying to accomplish. Of course, a
finished prototype is always preferable, but remember
to make at least 2, allowing you and the manufacturer
to discuss the details via phone, fax or e-mail.
- Packaging: inner carton, outer (shipping) carton
:
Be certain to consider how many unit cartons should be
packed in the shipping carton. Be aware of weight,
OSHA rulings, or specific requirements of your
customer.
- Labeling (unit and inner carton and outer carton):
Again, there might be laws, regulations, or customer
requirements to be considered.
- Product functions, intended use, guarantee
:
(e.g.: do you plan to guarantee this product to your
consumer? If so, what is the extent of the guarantee?)
- Regulatory concerns
: Associated with this
article (check the local and federal laws, especially
regarding childrens items).
- Shelf life concerns, if applicable
: (will this
item "go bad" or deteriorate within a
particular time?)
- Target consumer, target wholesale cost and target
retail price
: It is helpful to have a
competitive product survey completed at this time.
- Quantity
: long term and short term.
- Distribution channel, storage & shipping
:
How it will get to the wholesale distributor and / or
the customer? Will the product require special storage
or shipping conditions (e.g.: refrigeration, low
moisture, etc?) This will affect the packaging.
- Time frame
: When do you need to have the goods
completed and in the warehouse?
- Financing
. What are the terms of payment
required by your manufacturer and customer? How will
your cash flow be if your customer pays late?
- Other products
: Your business has a better
chance of thriving if you develop a product line
consisting of several products, rather than just one
product. Once you have identified the target customer
and optimal distribution channel, think of other
(related) products which can be marketed.
Each of the details listed above affects the price of
the goods and the choice of the manufacturer. Having all
of the "specifics" finalized will avoid
surprises, as well as save time, money, and frustration
for you and the potential manufacturers.
The second step is to evaluate whether it would be best
to manufacture in the United States, or overseas. The
decision is based on:
- Labor
: Does the item require a lot of labor?
Generally speaking, labor is much less offshore than
in the United States.
- Unique components
: Are there specific
components which can only be made efficiently in
certain places of the world?
- Order quantity
: Offshore shipments usually
require full container (truck) loads which, depending
on the size of the item, could be 100,000 units.
- Political and economic stability
of the
country in which you are planning to manufacture your
product.
- Connections and control
: How secure are you
with being able to maintain control if the
manufacturing facility is located far from you? (E.g.:
on the opposite side of the continent, or the opposite
of the world.)
The third step is to make a list of questions you will
ask the manufacturer. This might include:
- References
- Customers
- Current and former projects
- Manufacturing capacity
- Production lead time
- Minimum order quantities associated with all
components
It is always best to visit a manufacturing sight, if at
all possible to make certain the "pictures match the
words", and to gain a better understanding of the
manufacturing process.
The fourth step is to design a quality assurance
system. There is a great difference between you creating
one prototype in your home, and giving instructions to a
factory across the nation or across the world to
mass-produce 50,000 pieces of your product. Here are some
aspects to consider:
1. Is your product mass-produce-able? If not, how can
you amend it so it can be mass-produced without destroying
the qualities that make it unique and special?
2. Do you have engineering drawings and final
specifications complete?
3. Do you have a final prototype made? If not,
the manufacturer might be able to make a prototype for
you, if all of the details are finalized.
4. What are the properties of each of the materials you
are using?
What problems could occur during production, and how
can they be avoided?
5. How will quality be controlled? How and when will
the production be supervised and inspected? Remember that
you cannot build quality into a product at the end
of the production line, it has to be designed into
the product, and implemented at every production stage.
There should be a final inspection, and there are
outside companies who can handle this for you. However,
you are responsible for assuring the plant and the quality
control group understands your (reasonable) expectations.
Fifth, work with the manufacturer to devise a system of
tracking the production progress. No doubt, you have
promised delivery of the goods to your distributor by a
certain date. You do not want to learn of problems when it
is too late to correct them and still ship on time.
Sixth, remember to ask questions. Ask colleagues and
mentors who have manufactured similar products what they
learned; ask potential manufacturers what might go wrong,
ask potential customers and consumers what they are
expecting for the retail price they pay, et cetera.
Last, remember you will become a partner to your
manufacturer. You must help them to understand your
product, your concerns, and your needs. Communicate
thoroughly and encourage their questions.
You must walk with them throughout each step of the
production, and understand their processes as well as they
understand your product and your customers
expectations.
Be fair, be practical, be reasonable, and always
have respect for you marketing, financial, sales, and
manufacturing "partners".
It does "take a village to bring a product to
market". As village leader, you must make certain all
segments work well together toward the success of your
great invention.