Here’s something that you might not be thinking about when creating products…
We already know that overdevelopment is an issue.
But, there is a more detailed way to look at this issue, at least from the POV within the four walls of a retailer or brand.
Overdevelopment can be broken down into two buckets:
First: Overdevelopment of products.
Second: Overdevelopment of materials.
Now, in my experience, overdevelopment is measured by subtracting the number of products adopted into the assortment from the total number of developments. That difference is then divided by the total number of developments to get the over development rate.
Although that number captured the extent of product overdevelopment, the value ignores the upstream work that generated said products.
As a result, material overdevelopment is rarely measured, if at all. Even though it carries real cost. However, the cost remains hidden while teams waste resources on styles that never make it to market.
But, this begs the question… If the issue is so costly, why isn’t the overdevelopment of materials tracked to begin with?
When looking at merchant led organizations, the focus is solely on the product and the product only.
Doesn’t really matter how we get to said product, as long as we get there.
Meaning…
- Five sketches to meet style requirements in the line plan? Fine.
- Four prototypes with differing fabrics to approve one style? Go for it.
- Want to add in a new style in a new color after assortment lock? Let’s roll with it!
The root cause is confidence. Merchants don’t always trust that the assortment is right, so they hedge their bets with “just in case” styles. Throw in uncertain demand, markdown pressure and excess inventory to make the trust issue more prevalent.
As such, overdevelopment of materials is normalized while also being easy to ignore because merchants don’t see the cost directly. Vendors fund the material development cost upfront. The expense eventually gets punted back later as a chargeback line item hidden in the costs of doing business.
Out of sight. Out of mind.
But, eventually the bill comes due.
Often, it runs into the millions of dollars.
You might expect us to say that the answer here is process innovation.
Duh, yes. Because it is.
But, let’s get specific about how to start tracking materials overdevelopment while the season is still in motion.
Consider the following:
1 – Set a seasonal materials palette when creative direction is defined, anchored in existing materials in a library.
2 – Require selection from the library when building the line plan.
3 – Design uses the palette/library materials in sketches and digital renderings.
4 – Keep reworks and late additions within the library as much as possible during proto reviews, keep tight criteria for exceptions.
5 – Track material changes that impact the tech pack, BOM or vendor PO against total development activity.
To reinforce the behavior, assign clear accountability by team member and attach a cost to each new material development starting at line-plan creation. This does not need to be punitive; done well, it becomes a management tool that makes trade-offs visible and rewards the desired behaviors.
From my standpoint, this is a straightforward way to begin curing the condition of being materially overdeveloped.
…..before it becomes an expensive surprise.
