Introduction
One of the key features of resources is that they are scarce and finite. Proper utilization of resources involves employing strategies that improve sustainability and reduce wastage. Various mechanisms have been set to ensure that resources are used sustainably. The creation of systems that allow for maximum utilization of a resource is one of the methods of safeguarding product sustainability. In 2022, the Irish government signed the Circular Economy and Miscellaneous Provisions Act. The legislation aims to shift the country from a system where products end up in landfills to a reuse and recycling one. The system also calls for proper decision-making on how a product will be used at its early stages.
Product Lifecycle
Products go through various stages, from when they are passed from the consumers into the market until they are removed from the shelves. Early supplier involvement (ESI) is crucial for new product development (NPD). Through the involvement, there is the production of standardized and simple products that are attractive to the target market. The introduction stage is the initial phase when first-time customers get to interact with a new product. The growth stage is when the customers accept the new product, leading to increased demand (Eslami, Ghasemaghaei, and Hassanein 2021). At the maturity stage, the production and marketing costs are reduced and there is increased profitability. The decline stage is when the product attracts intense competition, and its value starts to depreciate. ESI must be involved to determine a productâs success throughout the four stages.
Defining the Circular Economy
The circular economy is a crucial concept when it comes to sustaining the use of a product. It is important to understand how the circular economy works to enhance sustainability. The circular economy refers to the creation of a system where products are used, re-used, and recycled in a manner that minimizes waste and pollution (Abdullah, 2021). The system seeks to make the most out of a product before it can be released as waste. Products are regenerated into different forms to give them a longer life. Moreover, the circular economy promotes the use of a closed-loop production process to make use of industrial waste (Abdullah, 2021). Waste materials from one industry can be useful input for another industry. To effectively implement the circular economy, proper decisions have to be made before a product is used. A decision on how a product will be used greatly affects its reusability and the circular economy.
Each product that goes to the market has to go through the (NPD). The initial stage of a product decides on the impact and how the product will be used when in the market. The NPD entails taking analyzing a product from the point of its generation to its introduction to the market (Aljumah, Nuseir, and Alam, 2021). There are several stages involved in the new product development stage. They include coming up with an idea for a product and later evaluating what ideas are suitable (Aljumah, Nuseir, and Alam, 2021). Deep research into the idea and product before a strategic analysis and market testing is done next. Under strategic analysis, factors such as market price, demand, costs, and sustainability of the product are considered. The circular economic model suggests that the decision on a product should be based on sustainability and maximum usage. Therefore, decisions made at the NPD must equally heed the aspirations of the circular economy.
Positive Effects of a Decision Made at the NPD
A decision made at the NPD stage can have various positive impacts on a productâs supply chain. Proper choice of material ensures that the materials used to generate a product are sustainable and environment-friendly (Moshood, Nawanir, and Mahmud, 2021). The material used to make a product must have fewer environmental hazards. In addition, it must be capable of being reused, recycled, and regenerated. A decision on material selection reduces the potential negative impacts of a product on the environment (Moshood, Nawanir, and Mahmud, 2021). Ultimately, it improves the productsâ sustainability in the market, which is a key achievement in any supply chain. Products should, therefore, be designed to sustain them in the supply chain. Overall, the proper selection of materials not only helps to conserve the environment but also contributes to the sustainability of a product.
Multiple options for the use of a product can be brainstormed, which contributes to sustainability. The product take-back option invites ideas on how a product can be returned, reused, or recycled (Pazoki and Samarghandi, 2020). A take-back program such as recycling conserves natural resources by reducing the need to consume new materials (Pazoki and Samarghandi, 2020). As a result, the product created from a resource is used for a longer period and reduces the need to use new resources. In other contexts, companies prefer to have a reputation for caring for the environment (Aljumah, Nuseir, and Alam, 2021). Companies can publicize their take-back programs, such as recycling, to maintain their reputation. When a decision is made at the NPD stage, the sustainability achieved is twofold. Firstly, it sustains the product in the supply chain and secondly, it sustains the resources used to make the product.
A decision at a product’s initial stage would ensure that the product is designed for recycling. Manufacturers are more likely to prioritize products that are capable of being recycled. As a consequence, manufacturers create products that can be easily disassembled and materials separated for recycling (Pazoki and Samarghandi, 2020). Most manufacturers only consider how fast their products will hit the market. Failure to consider whether a product is fit for recycling affects the product’s life in the market and the life of the resources used to create it. Close attention should be given to the product’s ability to be recycled and its effects on the environment. A sustainable product is, therefore, beneficial to the economy and the environment. Overall, a decision at the NPD stage presents many advantages to a productâs sustainability.
Disadvantages of NPD decisions
The negative impacts of deciding at the NPD stage cannot be overlooked. The rationale is that some of the decisions made at the NPD have several shortcomings in the product and the supply chain. For instance, a decision to develop a new product may turn out to be risky and fail to bring the desired outcome (Wang et al., 2020). A decision to make a product that strictly adheres to the circular economy might end up being unfit for the market. The ripple effect of that is hefty losses on the manufacturing company if the product is not well received in the market. Some losses may be recovered, while some may turn out impossible to recover. A company that strictly adheres to conforming with the circular economy, therefore, runs the risk of incurring losses.
An NPD decision may limit the supply chain flexibility of a product. The circular economy requires products to be made in a sustainable and environment-friendly manner (Abdoli, 2022). A company that wishes to seize an opportunity in the market may be hindered by a decision to adhere to a circular economy (Abdoli, 2022). Consequently, the decision makes a companyâs operation inflexible. The company will be unable to capitalize on new and other existing opportunities in the market. A manufactured product needs to be flexible to adjust to market trends and needs. A company would then be forced into a deadlock to apply the same strategy throughout. Such a situation could eventually hurt the product’s sustainability.
Marketing a new product consumes a ton of resources and time. A decision to develop a new product that aligns with the requirements of the circular economy takes time to market the new product (Abdoli, 2022). Advertising the newly manufactured product can be an expensive venture for most producers. Further, it takes a considerable amount of time to brand the new product to the same level as the initial one. Most companies do not have the luxury of time since the market is very competitive (Pazoki and Samarghandi, 2020). As a result, a company may not make the expected sales on a product. A decision made at the NPD stage is therefore critical as it also informs the expected disadvantages. Before a decision is made, a producer must consider a decision with the least negative effects on the productsâ supply chain.
Suggested Improvements
Several ways can be used to improve the outcome of a decision made at the NPD. The first suggestion would be to conduct thorough market research. Thorough research will help identify key issues such as customer demands and needs for the new product (Momoti and King, 2021). Customersâ attitudes and preferences can only be revealed through thorough market research. What is more, research aids in designing applicable strategies to fit into the competitive market. Research, therefore, enhances the sustainability of a product if a producer understands how the market forces operate. In summary, market research is crucial for a company that aspires to have product sustainability in the supply chain.
Tracking the performance of a product enhances its sustainability in the market. It is argued that continuous monitoring of how customers feel about a product helps to improve its subsequent production (Momoti and King, 2021). Customer feedback ought to be collected and used to shape the decisions to manufacture subsequent products. The feedback can also be used to build on how to make the product more environmentally friendly (Abdullah, 2021). A product needs to appeal to the market and environmental forces simultaneously. To achieve the perfect balance, customer feedback has to be taken seriously. The feedback should then be used to generate fast responses as the company deems fit. It is important to keep track of how the market feels about a product to improve and increase its time in the market.
Mapping out all the potential stakeholders that deal in a product acts as an added advantage. A manufacturer of a product can involve potential suppliers and other partners, such as customers at the NPD stage (Momoti and King, 2021). The stakeholders can advise on how to effectively and efficiently deliver the manufactured product. In addition, working with stakeholders enables them to familiarize themselves with the product in advance. Therefore, they can vouch for a product from an informed perspective. The mapping of stakeholders has to be strategic and should satisfy the market needs of a product. The market needs should in turn align with the aspirations of the circular economy. If all the suggestions are considered at an NPD stage of a product, its sustainability in the supply chain becomes inevitable.
Conclusion
The sustainability of a manufactured product is greatly affected by decisions made at the NPD stage. The new development product stage accounts for how a product is generated and how it is released to the market. A decision made at the NPD has to adhere to the circular economic system, which tries to save resources and minimize waste and pollution. Manufacturers of a product should be wary of the merits and demerits of the decisions taken and how they affect the supply chain of a product. The disadvantages can be minimized through various recommendations and, in turn, maximize the sustainability of products.
Reference List
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