Product Lifecycle Management Requires Cradle-to-Grave Approach

Supply Chain Management Review staff -- Supply Chain Management Review, 3/2/2007

New product introductions are notoriously tricky. According to IBM Global Business Services’ report on The Perfect Product Launch, success rates are very low with a significant proportion of companies missing their launch schedules. Yet a successful launch has so many benefits: increased sales, increased margins, more resale opportunities, and a sustained leadership position.

According to the report, a perfect product launch requires integration of new product introduction with sourcing and procurement, supply chain planning and execution, and service – or the entire product lifecycle. It also requires collaboration with key external partners. Particularly important are your customers as most companies says their primary strategy for product innovation is finding the best fit for customer requirements. For this reason companies should begin the product development process by collaborating with their customers to explicitly define their requirements.

But product lifecycle management does not end with a successful product launch, it needs to continue on throughout the product’s life, including its termination. If it doesn’t, companies risk carrying far too much slow-moving and obsolete inventory near the end of a product’s life.

In "Meeting the Product Lifecycle Challenge" from the October 2006 issue of Supply Chain Management Review, Edward Marien outlines how product inventory disposition can help companies evaluate a product’s viability and profitability throughout its life.