Mergers and acquisitions to service better the target end-use market segments and to achieve wider geographical market reach are often an important way forward for businesses of this type. Solving non-problems, or producing solutions to problems before they are needed, are both very wasteful in resource and demotivating to NPD staff. An outline cost-benefit analysis will be carried out on each potential project comparing the likely resulting pattern of sales volumes and margins with the likely pattern of expenditure and the probability of success. The potential strategic impact of success of these projects individually, and together, should be assessed. NPD projects should have clearly defined budgets, timescales and milestones which should be reviewed monthly.
Some chains have elements of both.
Technical textiles producers are at the very early stage in these chains and are likely to have little commercial power unless steps are taken to avoid this. Successful action requires a clear understanding of the supply chain and the power structures within it. In particular, it is important to identify the real decision-maker in the chain and how he can be influenced. DRA have developed methods of analysing supply chains and how they create value which can be used both to understand a company's current position in its supply chain and how it could be improved and to plan entry into new supply chains. Those companies with the right strategies can look forward to a profitable future.