The adage is wrong: Time is worth a lot more than money. A breakthrough McKinsey study found that, on average, companies lose a third of their profits when they launch a product six months late. That stands in stark contrast to a loss of less than 4% if they overspend on new product development.
The time spent developing a new product has more to do with its potential success than how much money companies throw at it. For the dietary supplements industry, bringing products to market can be inefficient at best. With a highly fragmented and specialized raw materials market, identifying and then qualifying suppliers can be difficult and time-consuming.
The political environment—including a renewed embrace of trade tariffs—has thrown an additional kink in today’s supply chain, making it even more difficult to import foreign ingredients. As a result, suppliers must provide a growing amount of documentation that verifies compliance. But it’s about more than appeasing regulators. Consumers want clean labels and verified label claims, too. It should come as no surprise that companies struggle with communication because of disjointed exchanges from email, spreadsheets, and shared drives.
These challenges require time and effort to overcome. One solution might be to hire more people. But there might be a better way.