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Time-to-market: definition and important aspects for procurement specialists
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Time-to-market in a nutshell:
Time-to-market describes the period from the initial product idea to the successful market launch of a new product or service. Optimizing this period is essential for purchasing, as fast and efficient procurement processes and strategic supplier selection create decisive competitive advantages.
Example: A car manufacturer reduces the time-to-market for a new vehicle model from 48 to 36 months by involving strategic suppliers in the development process at an early stage and carrying out parallel procurement activities, thereby securing a lead in the market segment.
Contents
Introduction to time-to-market controlling
What is time-to-market?
Time-to-market (TTM) refers to the period from the product idea or development to the market launch of a product or service. In an increasingly competitive market environment, a short time-to-market is crucial for gaining market share, meeting customer needs promptly and gaining a competitive advantage. A fast market launch enables companies to set trends rather than just follow them.
Core elements of time-to-market
Importance of time-to-market in purchasing
Time-to-market plays a key role in procurement management, as purchasing directly influences the speed at which products can be brought to market. Effective supplier management and early involvement of purchasing in development processes can reduce procurement times and avoid bottlenecks. This leads to faster time-to-market for products and strengthens the company's competitive position.
Implementation of a shortened time-to-market
By optimizing processes and working closely with suppliers, the time-to-market can be significantly shortened. Agile methodologies and early involvement of all stakeholders enable faster product development and market launch.
Case study: Fast market entry through agile procurement
A technology company is planning the launch of a new product. Purchasing is involved in the development phase right from the start. Joint workshops with suppliers are used to specify components that are available quickly. Procurement processes are accelerated with the help of agile project management methods. Result: The product is launched on the market two months earlier, giving the company a decisive competitive advantage.
Evaluation and strategic findings
✓ Critical success factors
→ Early supplier integration: strategic integration of key suppliers as early as the development phase for optimized components and processes
→ Agile procurement processes: Flexible and fast decision-making paths thanks to standardized processes and clear responsibilities
→ Cross-functional collaboration: close coordination between purchasing, development and production to avoid delays
⚠ Challenges
→ Complexity management: coordinating different stakeholders and parallel processes requires sophisticated project management
→ Quality assurance: balance between speed and quality requirements must be guaranteed
→ Risk management: early identification and hedging of supplier risks in the accelerated process
Future trends and implications:
"Optimizing time-to-market is becoming a strategic competitive factor in modern purchasing."
→ Digitalization of procurement processes
→ AI-supported supplier selection and evaluation
→ Predictive analytics for demand forecasts
→ Virtual prototyping with suppliers
Conclusion on time-to-market
Optimizing time-to-market is a critical success factor in today's business world. By efficiently combining agile methods, digital tools and strategic supplier integration, companies can significantly shorten their time-to-market. Purchasing plays a key role in this by optimizing procurement processes and being involved in product development at an early stage. Only those who continuously improve their time-to-market can remain competitive in the long term and make the most of market opportunities.
