Network Expertise: How to Get the Most from Your R&D Spend

How rigorously are you challenging your assumptions about your product — and about your end user? Product companies/manufacturers: if you’re not doing so, you may be making common prototyping mistakes (and not getting the most out of your R&D spend).

To help Idaho companies improve their approach to prototyping, we turned to the expert product developers at SGW Designworks. SGW is a longtime friend and partner to Vessel, and Ryan Gray, the company’s CEO, has frequently shared his expertise with us via our Supply Chain Insights video series:

Developing a Product? Listen to the Market (Your Assumptions May Be Wrong!)

Supply Chain Disruption Presenting Product-to-Market Opportunities

3D Printing and Rapid Prototyping: Solutions to Supply Chain Challenges

During our recent conversation with SGW, Gray shared further insights related to R&D and prototyping (topics our companies will discuss during two sessions at Boise Entrepreneur Week) as well as suggestions for companies looking to build effective product development teams.

His advice? “Challenge your assumptions about how users interact with your product. Challenge the assumption that you’re representative of your market,” says Gray. “Small companies assume they understand the end user, and that can result in the wrong feature set and price point. Because of these errors, products may not succeed after launch. Prototypes are a great tool to challenge our assumptions — this is maybe the most valid reason for a prototype to exist.”

Continue reading for Vessel’s Q&A with SGW.

What are the top prototyping mistakes you see product companies make?

1. Not thinking about the PURPOSE of a prototype before building it.

2. Thinking of a prototype as a milestone rather than a tool.

3. Rushing to launch without testing the product.

What is the right approach to prototyping?

• Prototypes are tools for learning, and each version should have a purpose, and test method defined before it’s built. (There may be 20 prototypes built for any specific product, but it should always be an intentional process.)

• Prototyping is more than a milestone, and it exists to test many things: feature sets, price points, user feedback. A disciplined approach is important to get results and have your dollars go further.

• Rather than rushing to launch without testing, dedicate time to thinking through the product’s durability, how users interact with it, or if they care about the features you’ve baked into it. Those things matter.

What advice do you have for companies looking to build an effective product development team?

1. Recognize that often, designers and engineers are either strong at ongoing product optimization / support (often called sustaining engineering), while others are good at development. There are exceptions, but typically any one individual won’t be strong in both of these things – they are different skill sets.

2. Think of your development team not as just engineering, but as a team that will help define the future of your business. Foster deep interactions with marketing teams, finance teams, etc. so that the developers have a complete view of how product-centric decisions impact the broader business.

3. Hire people with versatility: look for the specialties you need most, but fill positions with people that also have skills in adjacent areas. A team full of versatile people tends to collaborate more effectively – they are more likely to understand different points of view and be open to different approaches.

Thank you to Ryan Gray and SGW for sharing valuable expertise for Idaho manufacturers/product companies!

Navigating Idaho's Supply Chain: Strategic Sourcing and Procurement [Success Story]

When supplier disruptions threaten to delay a new product launch, where do established companies turn to when they need to source critical materials? In this success story, read about how Vessel’s strategic sourcing and procurement helped one Idaho company locate hard-to-find parts and launch its new product line ahead of time and within budget.

Background

Portsmith designs, manufactures, and distributes charging/Ethernet docks and adapters for handheld devices built by companies like Zebra Technologies, Honeywell, Motorola, and Samsung. In 2021, as supply chain disruptions continued across the globe, Portsmith identified an opportunity to quickly build and launch multi-slot charging docks for Zebra’s 9300, its flagship handheld computer used for inventory management and logistical operations in enterprise spaces such as retail stores and manufacturing facilities.

After 20 years in business, Portsmith was poised for success. The company already used a semi-modular design approach to reduce the time needed to develop new docking products like this one. This means that for most new OEM docks, only about half of the parts need to be designed specifically for the handheld. (These multi-slot charging docks would require electronics, injection-molded plastic, and sheet metal.) Portsmith also has proven, speedy paths through regulatory testing and production startup, having established good relationships with multiple contract manufacturers that provide materials for many of its products.

If Portsmith could quickly launch these new charging docks and have the product validated by users — while other manufacturers remained hamstrung by parts shortages and delivery delays — the company would be poised to get a foothold in the market. However, would widespread supply chain problems prevent Portsmith’s own suppliers from delivering the critical components at a reasonable price point and on time for the product’s launch?

All Hands on Deck

After contacting the supplier that was to manufacture several parts needed for the charging dock, Portsmith learned that lead times for both the plastic tooling and sourcing of the sheet metal would be far too long — meaning it could be 15 to 20 weeks before the company might receive its first unit. If this product was to be launched quickly, Portsmith would have to get creative.

The company decided to run a small pilot program in advance of an official product launch. Portsmith would source hard-to-get materials through speedier channels, then produce and distribute 100 to 200 units to five to ten customers, a group which would consist of major distribution partners and value-added resellers (VARs). Such a pilot would also provide an opportunity to test the market. And, although this approach would mean a greater upfront cost, it would speed up production.

The plastic parts would be easy to manufacture; Portsmith had access to a dedicated design team via its sister company, SGW Designworks, and could use 3D printed parts in place of the injected-molded parts. Sourcing the electronics would be no problem; Portsmith’s contract manufacturer agreed to speed up production and ship the necessary number of circuit boards to be programmed. However, one issue remained: where would they get the sheet metal? Would the company be able to find the material needed for 100 to 200 units — and then have it shaped and powder coated — all in time to assemble, test, and ship the units as part of the pilot run? Even Portsmith’s backup sources for the material were backlogged. With not a moment to lose, they contacted Vessel to brainstorm a potential solution.

Finding Longitude

Upon learning of Portsmith’s challenge, Vessel immediately began contacting several of its partners to inquire about available options. One partner in particular stood out: a sheet metal manufacturer in the region with a reputation for superior quality, reasonable timelines, and competitive pricing. The supplier provided a project estimate and some good news: it would be able to provide the manufactured sheet metal needed for 100-200 units in time for Portsmith’s pilot launch (and within budget).

In five weeks, the sheet metal supplier manufactured, packaged, and shipped material directly to Portsmith. Vessel served as a critical liaison between both parties throughout the process — from the initial project quote to final delivery. This required services such as design for manufacture, as well as maintaining a frequent feedback loop regarding necessary modifications to the parts and any other project updates. (Note: This supplier sourcing and management approach is Vessel's standard practice. It ensures that errors are minimized, efficiencies are maximized, and, to the extent possible given current supply chain challenges, unnecessary delays are eliminated.)

Despite a mid-project change (the geometry of a cutout in the sheet metal needed a slight alteration), the project was still completed on time and on budget. Portsmith was able to successfully launch its pilot program, getting its product in the hands of users eight weeks earlier than if they had waited for full production units. This timeline allowed customers — who liked the product and validated the design — to qualify the product for specific upcoming deals.

Staying the Course

“Portsmith is a great example of a company that is prioritizing innovation despite — and even in answer to — disruption,” says Derik Ellis, Vessel Co-founder and CEO. “They identified an opportunity to develop and launch a product that would answer an immediate need in the market, seized that opportunity, then were nimble enough to change course when their traditional sourcing channels were unable to deliver parts within a specific timeline. Portsmith is taking advantage of market variables to expand its product offering and better serve its customer base. You love to see it.”

When successful Idaho companies like Portsmith reach out to Vessel for support, it’s a win not just for a specific brand or product launch, but for Idaho manufacturing. By remaining hyper-focused on growing its network and forging strong relationships with its partners, Vessel is able to make valuable connections — connections that often provide solutions to even the most tricky supply-chain-related challenges.

“We were impressed by how quickly Vessel was able to identify a qualified shop to quote the parts,” says Ryan Gray, Portsmith Co-owner. “And they did a great job managing the process, but also in including us when decisions needed to be made.”

“Just because a client doesn’t have full capabilities and the various suppliers necessary to bring a product to market, that shouldn’t stop them in their efforts,” says Mike Sieler, Vessel’s Director of Strategic Sourcing.

“Vessel will bridge that gap by delivering the parts needed so a company can focus on the end goal — which is to create a viable business as competitively as possible, while connecting their product to their customers," Sieler continues. "Then, when the client has traction, they have the financial resources to bring in the elements necessary to grow their business — from both a production and a manufacturing standpoint — to support the sales they've discovered.”

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Download the case study below.

Portsmith Vessel Case Study

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Product Companies: Are You Fully Leveraging Resources Offered By the Idaho Manufacturing Alliance?

Are you an Idaho-based product company/manufacturer that is poised for growth, but hampered by an equipment problem, supply chain issue, or labor shortages? There aren't always easy answers to these challenges, but getting in step with the Idaho Manufacturing Alliance (IMA) — and Idaho’s greater manufacturing community — is a great place to start.

Recently, we had a conversation with Sheri Johnson, Executive Director of the Idaho Manufacturing Alliance, who shared with us the many ways the organization is holding up its three tenets: to connect, support, and promote manufacturing in Idaho.

We also asked for Johnson’s recommendations on how Idaho product companies/manufacturers can leverage the knowledge and many resources offered by the IMA. Continue reading for her suggestions.

What tips you would give to Idaho manufacturers looking to grow, get involved, and find connections in the industry?

SJ: Build relationships. Take the time to get out of your business and meet others in the industry, whether that’s through attending an IMA event, getting directly connected to others in your role, or intentionally seeking to meet the other manufacturers in your neighborhood or city, etc. These connections and conversations will be incredibly valuable!

Once connected, use your peers. Learn from their mistakes and benefit from their wins. Ask questions. Be interested in other people's stories and journeys. Find ways you can help each other.

Be willing to consider all available resources. During my years of running a manufacturing business, I was unaware of the valuable services and programs certain organizations, groups, and government agencies offered — many of which are free or have incentives to offset costs. We live in a great state that is considered very business-friendly. There are a lot of programs that small, medium, and large manufacturers could be taking advantage of — whether it’s workforce training reimbursements, trade assistance, small business consulting, import/export support, and more. Our Labor, Commerce, and Workforce Development groups are all committed to helping Idaho businesses grow and thrive.

Don’t be afraid to ask for help. Use the community! Odds are, someone else has had the same problem and can help you navigate to a solution. IMA has a sourcing needs/member requests section in our monthly newsletter that handles a lot of this. Equipment needed, equipment for sale, business systems user group needs, hiring, suppliers or parts needed, etc.

Spread the word. Manufacturing is a GREAT industry! Share with people in your circles all the cool things made in their backyards. If you need help learning about who some of those companies are, let us know!

What are some services the Idaho Manufacturing Alliance offers that would be helpful for product companies/manufacturers in this state?

SJ: Our 401k Association Retirement Plan, TalentSorter hiring platform, Nice Healthcare program, and some on-demand safety training offerings (coming soon) are something all manufacturers should be looking at. These programs all help in hiring, employee attraction/retention and offer great savings for members. We have curated these benefits after years of talking with manufacturers and what their needs were.

We currently offer both an HR and IT Cohort call each month. Those have been very valuable for manufacturing members to help problem solve in a safe, small-group environment. We hope to begin offering a C-Suite cohort soon.

As product companies/manufacturers work to find answers to new business and economic challenges, the Idaho Manufacturing Alliance continues to offer resources, connection, and support. “No one has all the answers,” says Johnson. Her advice? “Leverage the knowledge that members of the manufacturing community can offer. Your business — and life — will be richer for it!”

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The Idaho Manufacturing Alliance (IMA) is a membership organization focused on knowledge sharing, collaboration, and advocacy to cultivate an environment that creates benefits for the manufacturing industry and community as a whole. With passion for the manufacturing world in Idaho, IMA supports and connects manufacturers by building awareness and sharing knowledge throughout their camaraderie of members. They help to provide tangible and economic resources and are dedicated to authenticity, integrity, and service.