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Supply Chains should relook at secondary pack sizes for new products to succeed.
We know that various flow parameters in a consumer company’s supply chain are set for success of their existing products. Many of these parameters may be an obstacle for distribution of new products. Let’s examine them one by one.
The first obstacle in efficient distribution of new products is the size of secondary packs. Companies normally sell their products to distributors, retail chains and eCom channels in large packs, typically a dozen or higher units of the same sku.
While these packs work for ongoing products, they become an obstacle for new products, when the demand is uncertain and customers want to minimize their risk in working capital investment.
It is a typical batch size issue coming in the way of efficient flow. Unless we rework the secondary pack to suit wider distribution, new product launch will suffer. Bigger pack size would also mean higher instances of surplus inventory and obsolescence.