What are some best practices for managing the risks and uncertainties of raw material substitution?

1 Assess your needs and goals

Before you start looking for alternative materials, you need to have a clear understanding of your current and future needs and goals. What are the main drivers and motivations for considering raw material substitution? How do you measure the performance, quality, and value of your products or processes? What are the critical functions and characteristics of the materials you use? How do they affect your costs, revenues, and risks? How do they align with your sustainability and innovation objectives? By answering these questions, you can define the scope, criteria, and priorities for your substitution project.

3 Test and validate your substitutes

The next step is to test and validate your selected substitutes in real or simulated conditions, to verify their performance, quality, and compatibility with your products or processes. You should use appropriate methods and standards to measure and compare the results, such as laboratory experiments, pilot trials, field tests, or customer feedback. You should also identify and address any technical or operational issues, such as compatibility, safety, or quality problems, that may arise during the testing and validation phase. You should document and communicate your findings and recommendations to your stakeholders, and decide whether to proceed with the substitution or not.

4 Implement and monitor your substitution

If you decide to implement your substitution, you need to plan and execute the necessary actions to integrate the new materials into your products or processes. You should consider the impacts and implications of the substitution on your design, production, distribution, marketing, and customer service functions, and make the required adjustments or improvements. You should also communicate and collaborate with your suppliers, customers, regulators, and other stakeholders, to ensure a smooth and successful transition. You should monitor and evaluate the outcomes and impacts of your substitution, such as cost savings, revenue growth, risk reduction, or environmental benefits, and use the feedback to improve your performance or make further changes.

5 Review and update your substitution

Finally, you should review and update your substitution periodically, to ensure that it remains relevant, effective, and competitive. You should keep track of the changes and trends in your market, industry, and society, that may affect your needs, goals, or criteria for raw material substitution. You should also monitor the performance, availability, and impacts of your current and alternative materials, and identify any new opportunities or challenges that may arise. You should evaluate your substitution against your objectives and expectations, and make adjustments or revisions as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?