Lean Launch and Launch Timing8 A sometimes-overlooked driver of launch success is the role of the supply chain and distribution logistics. At the time of launch, manufacturing must be ramped-up to desired levels of production, the sales channel and distribution logistics should be in place, the salespeople and distributors should be sufficiently well trained on the new product, and adequate promotion to consumers and to the trade should be ready as well. Supply chain managers try to keep the supply chain system flexible so that it can respond rapidly to sales changes. This flexibility is called a lean launch, and keeping the launch lean means that the firm does not commit to too much inventory during the early days of launch but can ramp up quickly should sales take off. To implement a lean launch requires coordination between sourcing, manufacturing, and delivery operations such that the length of time from raw material to consumer is minimized. Once this is in place, the firm can respond quickly to real market needs rather than stocking up on inventory that sells slower than planned (or face stockouts due to unexpectedly high sales levels). A principle that drives lean launch is postponement, or delaying finalization of product form and identity until late in the development process, and delaying commitment of inventory until the last possible moment. This reduces lead times, minimizing uncertainty and increasing operational flexibility until the nature of the demand is more certain. 9 Postponement actually can be manifested in two ways: time postponement (deploy inventory as late as possible) and form postponement (lock in product design as late as possible). In order to successfully implement a lean launch, firms must have good information technology systems in place so that sales can be tracked, and raw materials and inventory can be replenished effectively. Fashion designer Burberry illustrates the benefits of lean manufacturing principles and a flexible supply chain. Lean manufacturing here is defined as producing small lot sizes to match customer demand. To do this requires excellent market research so that Burberry can identify the products and styles that are most popular, adjust quickly to changing trends, and get these to customers at lower prices.Page 380 Burberrys plan is to launch a new line of products monthly. By contrast, old-school fashion houses create the demands for upcoming fashion seasons themselves and design and produce their products months in advance of the anticipated demand. By being less flexible in terms of their manufacturing and supply chain, these traditional manufacturers are more likely to find themselves overstocked of some products and styles and out of stock in other items. 10 Figure 15.2 illustrates two other firms that have successfully implemented lean launch systems. FIGURE 15.2 Lean Launch: Two Examples Lean launch capability gives the firm some flexibility in timing the launch. Launch timing can be an unusually difficult thing to get right, because so many parties have a stake in it. Senior management may say that it is strategically the time for the new digital camera to be launched. But manufacturing may say that they are currently not ready to ramp up to full-scale production, which might take months. Or marketing may be delayed in getting the requisite training out to the sales force, or in setting up the distribution centers through big-box stores. But the competitor is about to launch its own version and so there can be no delay, and stockholders are holding their breath for a big, splashy, profitable launch. It can be quite difficult to find an optimal launch time, given so many conflicting opinions! If the timing of the launch is wrong, there may be severe financial consequences even if the launch is otherwise planned well. 11 A late launch means the product does not meet its sales potential or, in the extreme, misses the opportunity window altogether. Too early a launch, and the product may be commercialized without enough information on the marketplace, such as a clear specification of customer requirements or recent technology. The newest research on this topic suggests an interesting interplay between launch timing, lean launch, and product performance. A lean launch provides a firm with an option: since the time required to develop the new product is shorter, the firm can choose to launch earlier or later. So, manufacturing may be ready to go now, but marketing may require a few more weeks before the market is sufficiently primed; it is possible to delay the launch if necessary. (If the launch is not lean, the option to launch early is lost and management can only make a later launch.) But the firm still has to get the timing right, or the benefits derived from the lean launch will be compromised.

Write a 500-1000 word, double-spaced, APA formatted short paper analyzing the overlooked driver of launch success: the role of the supply chain and distribution logistics.

Questions to address: how do supply chain managers keep the supply chain system flexible? What are the key concepts of lean launch and postponement? How do Burberry and Benetton make use of lean launch concepts in their business models, to gain competitive advantages? What happens if the timing of the launch is wrong?

Remember to include course terms, facts/figures, business examples, and citations/references in all your papers. The more support you can include in your papers, the stronger they will be.

Format your short paper consistent with APA guidelines.