Prepare thyself for a mildly epic undertaking of product lift cycles
Hi, I’m James, this is Whiteboard Wednesday, today we’re going to talk about Product Life Cycles, and no, this is not the talk about “where do products come from?”. You should probably get that from your mom and dad.
So in every industry there are product life cycles, whether that in manufacturing, warehouses, there are the rise and fall of those things that we make, sell, and distribute.
Typically, there’s an Intro, Growth, Maturity, and Decline of these products as they come into market, take off, stabilize, steady-out, and eventually something new comes along, something better. This is a constant cycle.
But what can we do as a business to both put this to use, be prepared for it, and prepare for the next line of product life cycles.
If you’re a manufacturer, if you’re in the warehouse, there are a few steps that you can take at each one of these thresholds that you might cross as it relates to an automated solution, and how you can put it to the best use for this particular example.
So we have the INTRO of this product. This might be early adopters, something just coming onto market, or some new extension of a product that already exists. And for this we need to make sure we raise our inventory accordingly. If levels are rising, demand is rising, we need to be able to combat that with something like an AUTO RE-ORDER PURCHASE. So that we don’t have to personally watch each level, we have set marks as far as where that level can go, and when it dips below that, the software automatically reorders so that we stay in a safe zone.
We have our GROWTH process, where we really start to shoot up, and our processes become really important. We need to know the workflow of everything, and cut down any time lost between stages, shipment, manufacturer, whatever it may be. One of the best uses of our software that we can do is ORDER MANAGEMENT.
For the warehouse side, how quickly somethings coming in, sent to receiving, and quickly sent back out, picking, packing, and shipping. Remember, if we can reduce the time between each of those, we’re a lot faster, we’re going to help with our own market.
Manufacturing, same thing, but now we have our raw materials included as well, and if we can make sure we have a streamlined order management process, we can meet the demand of this curve.
MATURITY. So the market’s stabilizing, maybe there’s other competition in the market, and we really have to optimize how much we’re making, how many items we’re keeping, and keep those levels accurate. So we want to use something like REPORTS.
With REPORTS we can quickly take a look at what is coming in, what is going out, so we can summarize kind of where the market is at, even on an individual level as a company.
And then, the DECLINE. It’s sad, but it happens. We need to scale and search. There is where accurate ACCOUNTING really comes into play, because if you can scale appropriately from this little decline part of whatever this product is, you’re not going to have too much on your shelves, you’re not going to plan too far ahead, you’re going to keep just the right levels so that you can look at where your revenue stream is coming from and adjust accordingly.
And on the search side, we can even go back to the reports and see what is the next product. Is there a new iteration of something we already carry? Is there a new trend that is popping up in our accounting?
So if we can make use of our auto reorder, order management, reports, and accounting, and all the other tools in our automated solution for our business processes, we can stay ahead of this curve, and be prepared for the next one to come along.
We can stay competitive, we can stay in the market, and we can keep our revenues where they need to be.
That’s this Whiteboard Wednesday, I’m James, and I’m going to miss you.