Scorecard Concept Description

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Guide to ECR concepts

Demand Management

Supply Management

Concepts

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Demand Management

D5. Optimize New Product Introductions

	Score	0	1	2	3	4
Concepts	General Meaning	Nothing Planned	Plans agreed but have not yet started implementation	Pilot tests being conducted	Roll out of implementation started	Fully Implemented
NPI Planning	The degree to which a successful new product introduction program plays a strategic role in supporting overall corporate and category objectives.	New product introductions are not viewed as a strategic opportunity and decisions are based on short term considerations.	Plans in place to establish the strategic role for NPI and to implement a structured process for internal and joint new product introductions.	Guidelines provided for NPI, but focused primarily on short term. Most new item decisions are based on meeting competition, not on meeting consumer needs.	NPIs linked to corporate and category objectives. Clear guidance provided throughout the organization. Short-term considerations still influences NPI plans.	NPI strategic efforts are aligned to corporate and category objectives, including linkage to trading partner's NPI programs. Joint systems and decision support models are in place.
NPI Execution	The overall New Product Launch process covering both demand and supply aspects.	No structured process to ensure products are available to the consumer at launch date. Phase out of remnant products is not co-ordinated.	Plans exist to implement a NPI launch process, some improvements have been made, and joint resources are used to correct problems.	A NPI process is being used on selected high profile NPIs. Most new items meet objectives for old stock sell-through and full implementation of support plans.	A NPI process is routinely used, parts of the total system are optimized to achieve results. Objectives on speed-to-shelf, remnant inventory and introductory support are set but not routinely met.	A highly efficient NPI process exists throughout the trading partners' supply chain. Objectives on speed-to-shelf, remnant inventories and introductory support are routinely met.
NPI Evaluation	The degree to which new product introductions are evaluated jointly against a common set of objectives.	No efforts to evaluate new product introduction results or the new product introduction costs.	An understanding exists of the need to measure new product introductions and their costs. Some basic analysis is routinely conducted.	New product introductions are evaluated based on traditional measures(e.g. profit, sales and share). Some reviews with trading partners are conducted.	A broader set of results and process measures are evaluated related to category objectives. Joint reviews with trading partners include consumer data.	An agreed set of measures are evaluated jointly by trading partners and related to the category and corporate objectives. These targets are routinely being met.

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