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.