How can you use concept testing to improve your supply chain?

Concept testing involves gathering feedback from potential or existing customers using methods like surveys, interviews, focus groups, prototypes, or simulations. The aim is to validate assumptions, measure the appeal and feasibility of an idea, and address key questions. This includes understanding customer preferences, perception compared to alternatives, pricing considerations, and potential challenges associated with the concept.

I see a strong alignment between the concept testing and agile: Both share the importance of feedback, a customer centric approach, iteration, continuous improvement, risk mitigation and maximizing value. A good approach to meet customer needs!

Concept testing is instrumental in the realm of supply chain improvement, a process aimed at enhancing efficiency, effectiveness, and sustainability. This improvement spans various aspects like sourcing, production, distribution, inventory, logistics, quality, and customer service. The objective is to reduce costs, boost revenues, enhance customer satisfaction, and attain a competitive edge. Given the complexity and potential impacts of supply chain changes, concept testing becomes crucial. It helps understand customer needs, identify improvement opportunities, evaluate proposed solutions for feasibility and profitability, assess impacts on business objectives and sustainability goals, and gather valuable feedback for refinement.

Concept testing for supply chain improvement involves several steps. Begin by clearly defining your improvement objective and scope, including the problem or opportunity, key metrics, and stakeholders involved. Generate and select your improvement concept, considering benefits and features for customers and stakeholders. Develop and execute a concept testing plan using appropriate methods and tools for data collection and analysis. Finally, interpret the results to identify strengths and weaknesses, guiding the refinement and improvement of your supply chain concept.

Various industries utilize concept testing for supply chain improvement. For instance, a clothing retailer might assess on-demand manufacturing through concept testing, examining customer demand, satisfaction, and willingness to pay. Similarly, a food manufacturer may use concept testing to evaluate the technical feasibility, quality, and safety of a circular supply chain concept. Additionally, a logistics company might measure the efficiency, effectiveness, and sustainability of a smart routing concept, along with customer satisfaction, retention, and referral. Concept testing serves as a valuable tool to gauge the feasibility and potential success of diverse supply chain improvement initiatives.

Concept testing is a potent tool for advancing supply chain performance and value proposition. To optimize its effectiveness, align it with your supply chain strategy, involve customers and stakeholders, test concepts early and frequently, and utilize a mix of qualitative and quantitative methods. Maintain an open-minded and flexible approach, ensuring relevance to your supply chain vision, understanding customer needs, iterating based on results, and balancing data depth and breadth. Adaptability, avoiding a reliance on perfect concepts, seeking diverse feedback, and avoiding attachment to initial ideas are essential best practices in supply chain concept testing.

If you have already established good and onest relationship with your customers you may ask them all the questions mentioned before. Try to focus on the answers showing mutual benefits.