Spoiler alert—communication, collaboration, and information flows are at the root of these. But don’t worry, we’ve got fixes for each of the dirty dozen.
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Ah more than 75% of CPG brands planning to increase spending on product innovation, you’d think we’d be swimming in a sea of exciting new products. And yet, data suggests that overall, product innovation in CPG has never really escaped the pandemic doldrums. It’s a conundrum—on one hand, brands genuinely want to dazzle consumers and meet their evolving expectations. Companies are ready to put resources toward new products and explore new categories. But somehow, many companies are stalled at the starting line when it comes to new product development (NPD). What gives?
Identify the fixable problems for product development
There are a number of factors making innovation harder than it should be, and plenty of brands are wrangling several at a time. The bottom line, however, is that communication, collaboration, and information flows are at the root of most problems.
The good news? All of these problems are fixable. But before you can fix what’s broken, you’ve got to know where the cracks are. That’s why we’ve put together an “innovation dirty dozen:” 12 sticky issues that are slowing down your NPD. If any of these ring a bell, don’t worry. We’ve got some real-world solutions to help you get unstuck.
A collection of how-tos for your R&D team
If you’re still wondering why you should download this resource, here’s a quick overview of what you can expect to learn.
- How to rapidly iterate on everything from formulation to packaging and artwork
- How to collaborate effectively across teams, and with external supply chain partners
- How to accelerate NPD without compromising on quality and/or compliance
- How to take innovation to the next level with an elevated international strategy
A SNEAK PREVIEW
1. Sourcing is slow and clunky.
Innovation often requires new ingredients, some of which may not be available through your established supply lines. So, when it’s time to source something new, the process often slows to a crawl. Some common reasons include:
It’s difficult to identify and qualify suppliers.
Simply finding a supplier with the ability to deliver what you need can be difficult, and that’s only the beginning of the process. Once you find a potential supplier, qualification and verification processes can take time. Even assuming that your supplier requirements are clear and well established, the exchange of information necessary to ensure that you’ve found the right partner can be a tedious—not to mention frustrating—process.
Supplier communication is slow and awkward.
According to a TraceGains survey, 95% of suppliers still rely on email for crucial customer communications. (Shockingly, 4% still require fax!) But exchanging emails and voicemails is far from the most effective, or reliable, approach to reaching suppliers.what are the biggest issues
%
Suppliers admit that outdated processes sometimes or often create issues in their day-to-day work
%
Still use manual spreadsheets to manage day-to-day tasks, processes, and document exchanges
%
Cite miscommunication as one of the biggest issues today
Long lag times for documentation, specs, and samples.
Verifying ingredient specifications and other documentation depends on the supplier’s willingness to share relevant data, which may or may not go smoothly. And when physical product is required, that process can extend further still.
Ever-growing lists of requirements.
Obviously, any product you create has to be safe, compliant with relevant regulations, compelling for consumers, and attractively packaged. But in today’s CPG industry, multiple other requirements also come into play. Ingredient attributes and supplier certifications are always important, but ESG-related data including carbon impact information, deforestation data, water usage information, and other requirements are increasingly part of the mix.
More resources for rapid innovation
2024 NPD Report: R&D Outlook for the Food and Beverage Industry
The Big Book of NPD Secrets
