The product made sense in sales – but the bill arrives in operations.
The decision to introduce a new product doesn't just expand your range – it makes your business more complex.
But the decision is rarely made in operations, inventory, or procurement, where the consequences are actually felt.
It's made in sales where a salesperson spots an opportunity:
The product range needs to be expanded with a specialist product for a customer in Germany.
The customer is asking for it. The potential is clear.
So you do the right thing – on paper:
You find a supplier with a suitable MOQ, accept a longer lead time, and stock the item to be able to deliver quickly.
But the new product doesn't just create new revenue – it creates new complexity in operations, procurement, and inventory:
Procurement has to navigate new MOQs, lead times, and supplier requirements.
In operations, the question arises:
"How are we actually supposed to manage this product?"
But there's no answer – because it wasn't clarified when the decision was made.
And forecasting? There's no historical data. So planning becomes based on gut feeling and manual assessments – and often ends in backorders or excess stock.
Yet, sales keeps on promising it to customers.
Meanwhile, replenishment becomes manual, because the product falls outside your current setup and therefore has to be assessed manually again and again.
And this isn't an isolated case. It's a pattern.
The problem isn't that you make the decision. It's that you make it without seeing the consequences.
Of course you should introduce new products – you just need to do it with an understanding of what they entail.
If you don't, it shows up in your day-to-day operations.
When the decision has a cost
You probably experience it every day:
An urgent order because something has run out.
A little extra stock "just to be safe."
An order that needs to be reshuffled.
A quick decision because there's no time for anything else.
The new product that started as an opportunity turns into more special regulations, more decisions, more coordination, and more exceptions in an already busy day.
The product starts to involve:
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new ways of purchasing
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new ways of planning
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new situations that don't fit into the existing setup
And every time something deviates, the decision lands with operations – because there's no established way of handling it.
Over time:
More items lead to more decisions.
More decisions lead to more coordination.
More coordination leads to more exceptions.
And suddenly you're spending more time managing your product range than optimising it.
And that product that was supposed to generate more revenue?
It starts consuming more time and capital in daily operations than it gives back.
The consequences are becoming clear – but where did you actually go wrong?
Ask the right questions before making the decision
Most companies ask: "Can we sell this?"
But that's not what determines whether it becomes good business.
The right questions are: "What will this require of us day-to-day – and is the complexity worth it?"
Because new products are rarely just products.
They are small investment decisions in disguise – and need to be made with an understanding of the total cost in operations, complexity, and capital.
Before you create a new product, you should therefore not only be able to answer what you earn, but what the product demands:
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Can we sell it – is there a market for the product?
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What is the success criterion – what specific conditions must be met for the product to be profitable for the business?
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Who is the supplier – do you have an existing supplier, or do you need to go out and find a new one?
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What does it cost to introduce the product – what costs are associated with launching it, and is the investment worth it?
Now the decision isn't just about the top line – but about the consequences.
Spend your money on the right things
The bottom line is simple:
Complexity costs – in time, capital, and coordination.
For every new item, the same things happens:
The potential seems clear at first – the demand is there, and the decision makes sense. The consequences only emerge later – in more exceptions, write-offs, and rising tied-up capital.
That's why the decision about a new product isn't just about potential – but about the complexity you're saying yes to.
That's why the decision about a new product isn't just about potential – but about the complexity you're saying yes to.
Because not all products are equally valuable – but all of them create complexity.
The question is whether the complexity pays off.
Once you know whether the product's value exceeds its complexity, you'll know whether you're spending your money on the right things.
Most people only understand the complexity when it's too late.
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