Food Processing - May 2008 - (Page 32)

PRODUCT DEVELOPMENT provide seminars with different presentations ranging from consumer trends to potential health claims to product development to help assure the most efficient cross-functional team,” adds Reid. Dairy does a good job delivering product value. But to make greatest use of its potential, the in-house research and development team must have specialized resources that only state-of-the-art dairy science can provide. At DMI, the specific expertise is readily at hand. In order to stay ahead of trends and provide expertise that may not be available at the company, DMI funds centers for dairy research like the North Carolina State University Sensory Service Center. One need only look at the booming yogurt category to see evidence of the application of this expertise. Connecting to the network At NineSigma, (www.ninesigma.com), Cleveland, the approach is something clients call “insourcing innovation,” rather than outsourcing product development. “Typically companies need enhanced research and development capability. NineSigma’s role is to help the client put together a team based on their needs, which from one client to another can vary extensively,” says Paul Stiros, CEO of NineSigma. NineSigma acts as kind of a sophisticated matchmaker with a network of more than 1.7 million entities that include industrial associations, inventor associations and food institutes, just to name a few categories. “We start with a statement or request for proposal (R FP), which is distributed to members. Each R FP constitutes a unique search for those entities in the database, anywhere in the world, including global industrial companies, university or national labs, or other entities in the science and technology ecosystem. The purpose of this first R FP is to define a subnetwork of 1,000 to 10,000 entities that can provide the client the needed expertise and capability,” explains Stiros. Trade group Dairy Management Inc. will assist any food company considering using dairy ingredients with basic research, product development and testing. Here a trained sensory panel evaluates products and their characteristics. last few years, according to Alan Reid, senior vice president for U.S. manufacturing and ingredient marketing at Dairy Management Inc. (www.innovatewithdairy.com), Rosemont, Ill. DMI is a not-for-profit organization that leads and manages the American Dairy Assn., the National Dairy Council and the U.S. Dairy Export Council and works to increase demand for U.S. dairy products and ingredients on behalf of America’s dairy producers. “Expectations for sales are increasing for new products and for line extensions, but the success rate is not. This tends to favor fewer creative products and more sequels,” says Reid. “It’s expensive to launch entirely new products, and that means opportunity left on the table,” he continues. “A third party can help manage risks, introduce new thinking, supply needed data, provide insight and inject the energy necessary to make the new ideas successful. “The best practice for new product development is a cooperative approach. Research and development, sales, marketing, production, operations, finance and procurement are different functions that may not always coordinate efficiently. The purpose of the third party is to make certain these departments talk to each other effectively. The third party may 32 • FOOD PROCESSING May 2008 NOTE TO PlaNT OPS … aND PaCkaGING Just as the management and/or R&D team must carefully consider outsourcing product development, so must your company consider outsourcing manufacturing. Contract manufacturing and packaging can help food processors improve operational efficiency, shorten time to market and improve cost control. For small companies and entrepreneurs, contract manufacturing and packaging may help commercialize a product even if they lack manufacturing resources. For large food processors, contract manufacturing is a cost-effective way to manufacture products in small lots for test marketing, seasonal sales or special promotions – without investing in production cells to handle these specialty runs. Outsourcing frees the processor to focus on its strength as a high-volume manufacturer. In addition, using a contract packager, or copacker, gives large processors a way to present the same basic product in many packaging configurations. Working with a copacker, the food company can efficiently package the same product in sizes and assortments tailored to a variety of customer segments. WWW.FOODPROCESSING.COM http://www.ninesigma.com http://www.innovatewithdairy.com http://www.foodprocessing.com

Table of Contents Feed for the Digital Edition of Food Processing - May 2008

Food Processing - May 2008 Editor’s Plate NewsBites The Trends Rollout Food Biz Kids Product Developer turned Bean Counter The top-selling new products of 2007 The open road Back to the Big Easy Managing the global plant A new column with answers to your plant-fl oor questions New Supplier Products Toops Scoops

Food Processing - May 2008

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