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EXECUTIVE SUMMARY | The new product introduction process must be independent enough to act alone, yet flexible enough to be integrated into existing processes for planning. BASF Group's Chemical Intermediates Division (CI) does it by using both the First Order Process (FOP) that addresses new products and the existing S&OP process. This way new products are given the right focus, yet not decoupled from existing activities. The stakeholders in the process include Controlling, Sales, Marketing, Supply Chain, as well as people from both Demand and Supply Management and Operations. The integration of FOP with existing business processes not only makes introductions easier but also helps in expediting.
The BASF Group's Chemical Intermediates Division develops, produces, and markets a portfolio of about 700 intermediate products around the world. Its most important product groups include amines, diols, polyalcohols, acids, and specialties. Intermediates are used as starting materials for coatings, plastics, pharmaceuticals, textiles, detergents, and crop protectants. Innovative intermediates help to improve both the properties of final products and the efficiency of production processes. The ISO 9001-certified Chemical Intermediates Division operates plants in Europe, Asia, and North America.
NEW PRODUCT INTRODUCTION
At BASF Group's Chemical Intermediates Division (CI), a new product introduction is defined in several ways. It can be an entirely new product sold to new or existing customers, existing products sold for new applications, new customers for existing products, and/or past customers resuming purchases because of attractive terms or specifications.
New products are the most difficult to manage; therefore, they require a unique process. The opportunity to add additional products and customers should not be overshadowed by the difficulties they present in developing, planning, and executing them. The purpose of adding new products, besides increasing revenue and profits, is to show customers that the company is not just a supplier, but an effective partner. It can assist in their research efforts, as well as in developing existing lines of products for new applications. Introducing new products requires not only a new process, but also leveraging the existing ones, such as S&OP. An effective new product introduction process requires effective
* Forecasting,
* Planning assumptions, and
* Execution.
Forecasting new products follows the same process used for existing products. Validation meetings are held where developers of...