LOI vs NPI
LOI (Letter of Intent) and NPI (New Product Introduction) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: LOI refers to letter of intent, while NPI refers to new product introduction — they describe different things even when they show up in the same sentence.
LOI — Letter of Intent
A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in.
NPI — New Product Introduction
The cross-functional process of taking a product from concept through engineering, manufacturing, and launch. NPI is where product, ops, and supply chain either align — or quietly miss the launch window.
When to use LOI
Reach for "LOI" when the conversation is specifically about letter of intent. A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in.
When to use NPI
Reach for "NPI" when the conversation is specifically about new product introduction. The cross-functional process of taking a product from concept through engineering, manufacturing, and launch. NPI is where product, ops, and supply chain either align — or quietly miss the launch window.
FAQs
What is the difference between LOI and NPI?
LOI stands for Letter of Intent — A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in. NPI stands for New Product Introduction — The cross-functional process of taking a product from concept through engineering, manufacturing, and launch. NPI is where product, ops, and supply chain either align — or quietly miss the launch window.
Are LOI and NPI the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. LOI = Letter of Intent. NPI = New Product Introduction.
When should I use LOI vs NPI?
Use LOI when you're specifically referring to letter of intent. Use NPI when the topic is new product introduction.