Three Sourcing Strategies to Reduce NPD Risk

New product development carries inherent risks from supply chain disruptions. Smart sourcing strategies can mitigate these risks early. Here are three practical approaches.

First, dual sourcing. Qualify two suppliers for critical components from the start. This prevents single-point failures and gives leverage for pricing. Start early to avoid delays.

Second, involve suppliers early in design. Their expertise can identify manufacturability issues, reduce material costs, and shorten lead times. This collaborative approach also builds commitment.

Finally, maintain a strategic inventory buffer. For long-lead or high-risk items, hold safety stock that covers initial production runs. This protects against supplier variability.

These tactics don't just reduce risk; they often improve cost and speed. Apply them from concept phase through launch.

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