Supply chain issues have been well-documented over the past two years. As companies look for ways to reduce the impact, they are often overlooking how creative technology and CGI solutions can help simplify somewhat complicated industry issues.
In most instances, the success rate of a particular product is heavily dependent upon a window of time where a product is introduced to the market and can make the most money. The simplest way to explain how supply chain issues affect brands is the economics surrounding this brief time when a product is profitable.
Operational Focus - Cut costs & increase the speed of production
As Just-In-Time inventory management practices became popular in the early oughts, companies found ways to work with less inventory on hand, allowing them the flexibility to operate very lean real-time inventory backed by an efficient supply chain.
As companies implement plans to mitigate risk and the gap that the supply chain issues have caused with delivering goods on time, they often tend to focus on ways to shorten their supply chain, source new suppliers, and use resources to help supplement the loss of sales due to these issues.
Marketing - Only after operational issues are addressed do the needs of marketing rise to the top
One of the most affected areas where supply chain issues have plagued marketing & brand teams is in relation to product launches.
Companies are now rethinking their asset creation strategy, one that was heavily dependent on having the product in hand, shooting with traditional photography, and relying on vendors and partners to work within accelerated timelines.
Let's simplify to three scenarios.
Scenario 1: Before Supply Chain Challenges
Company A is releasing a new product. The new product is shipped to the brand's US headquarters. The brand's marketing team creates visual communications to help support the product launch. The product is introduced into the market. The company profits.
Scenario 2: Recurring Problems When Supply Chain Issues Began
Company B is launching a new product. Due to supply chain issues, the new product shipment is delayed to the US headquarters. The marketing team is delayed in creating marketing materials for the release. The product is released behind schedule. Company B loses key selling time and limits profits due to the missed launch.
Scenario 3: Adapting & Out-Smarting Supply Chain Challenges
Company C is launching a new product. The marketing team creates a CGI model of the new product, allowing them to control the timeline in developing visual marketing assets without the need for a physical product. Company C launches the new product on time. The brand profits.
In the last example, supply chain issues are still very much present, but Company C takes control of the creative process and eliminates the risk of missing a project deadline and reducing profits.
Creating a photorealistic CGI model of a product is a technical process that allows your team the versatility to use the CGI model for retailer product images, feature and benefits videos, and full production commercial use.
We try and simplify: Product + Sales = Profit. If you don't have a product or a strategy for when the product is missing, it's tough to figure out the end of that equation. Which company are you? Or perhaps the question is, which company would you like to be? If you'd like to start out-smarting those pesky supply chain issues, connect with our team. We'll help you get there!