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How can you measure the impact of a product launch on your supply chain?

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Launching a new product is an exciting and challenging process that requires careful planning, testing, and execution. But how do you know if your product launch is successful and how it affects your supply chain? In this article, we will explore some ways to measure the impact of a product launch on your supply chain, from customer demand and satisfaction to inventory and logistics.

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Ashanthi Paul

Deputy General Manager at MAS Holdings
Priscila Kobayashi, MBA

Engenheira de Planejamento (S&OP), Projetos e Produtos| Especialista em Produ??o e Qualidade| Gest?o de Processos e…

1 Customer demand and satisfaction

One of the most important indicators of a product launch success is how much customers want and like your product. You can measure customer demand and satisfaction by tracking metrics such as sales volume, conversion rate, retention rate, churn rate, and net promoter score (NPS). These metrics can help you understand how well your product meets the needs and expectations of your target market, how loyal and engaged your customers are, and how likely they are to recommend your product to others. Customer demand and satisfaction can also affect your supply chain by influencing your demand forecasting, production planning, and inventory management.

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James Mikkelson

Bootstrapped Founder of Shiptheory ?? I can cut 2 hours a day from your shipping process. Challenge me!
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NPS and other metric based scales are great for mature products where you've established your ICP. But for validating a MVP or early stage product: 1. Make a rough forecast (guess) the take up, and identify what you need the take up to be. You need to first understand your lowest level activity before you can look at the resulting data. 2. What's your success metric? Active users? Sign ups? Time on page? Sales? Then compare to what what actually happened..is the result close enough? Is it fixable? 3. Will people pay? Ask early on for payment, promise a discount for a year or more if they do... If people won't pay for it, it doesn't matter how much they claim to like it or how good your NPS is.

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2 Inventory and logistics

Another way to measure the impact of a product launch on your supply chain is to monitor your inventory and logistics performance. You can measure inventory and logistics by tracking metrics such as stock availability, stock turnover, fill rate, lead time, and delivery time. These metrics can help you assess how efficiently and effectively you manage your inventory levels, replenish your stock, fulfill your orders, and deliver your product to your customers. Inventory and logistics can also affect your supply chain by impacting your costs, risks, and customer service.

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Ashanthi Paul

Deputy General Manager at MAS Holdings
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It can certainly impact. If it a successful launch , supply chain partners deman will certainly increase and they will be positioned accordingly in the relevant industry. Internally its employees will certainly benefit from exposure and recognition perspective as well as will be motivated to do more and be innovative to ensure they have a strong continuous offering. They will also attract new business opportunities.

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3 Costs and risks

A third way to measure the impact of a product launch on your supply chain is to analyze your costs and risks. You can measure costs and risks by tracking metrics such as cost of goods sold (COGS), gross margin, return on investment (ROI), break-even point, and risk exposure. These metrics can help you evaluate how profitable and sustainable your product launch is, how much you spend and earn from your product, how long it takes to recover your investment, and how vulnerable you are to uncertainties and disruptions. Costs and risks can also affect your supply chain by influencing your pricing, quality, and contingency strategies.

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Priscila Kobayashi, MBA

Engenheira de Planejamento (S&OP), Projetos e Produtos| Especialista em Produ??o e Qualidade| Gest?o de Processos e Melhoria Contínua
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To measure the impact of a product launch on your supply chain, analyze cost variations and assess risks associated with inventory management, production, and distribution. Track changes in procurement expenses, transportation costs, and potential disruptions to gauge the overall effectiveness and resilience of your supply chain strategy.

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4 Quality and feedback

A fourth way to measure the impact of a product launch on your supply chain is to collect and review your quality and feedback data. You can measure quality and feedback by tracking metrics such as defect rate, customer complaints, customer reviews, and product ratings. These metrics can help you identify and resolve any issues or problems with your product, improve your product features and performance, and enhance your customer satisfaction and loyalty. Quality and feedback can also affect your supply chain by affecting your reputation, competitiveness, and innovation.

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Priscila Kobayashi, MBA

Engenheira de Planejamento (S&OP), Projetos e Produtos| Especialista em Produ??o e Qualidade| Gest?o de Processos e Melhoria Contínua
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To measure the impact of a product launch on your supply chain, monitor quality metrics such as defect rates, customer complaints, and returns. Collect feedback from suppliers, distributors, and customers to evaluate satisfaction levels and identify areas for improvement, ensuring a smooth and successful integration of the new product into your supply chain.

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Jenny Chan

Factory Owner || Outdoor Camping Gears || Travel Items||Gardenning/Garage items || Over 10 years of OEM/ODM experience ||
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I would say a reliable partner, sometimes it's not just about the cost and price, it's the way you connect with the other. Always be reliable to your partners, workers, and suppliers

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5 Pricing and positioning

A fifth way to measure the impact of a product launch on your supply chain is to compare and adjust your pricing and positioning strategies. You can measure pricing and positioning by tracking metrics such as market share, competitive analysis, value proposition, and price elasticity. These metrics can help you understand how well your product competes and differentiates in the market, how much value you offer and capture from your customers, and how sensitive your customers are to price changes. Pricing and positioning can also affect your supply chain by influencing your demand, profitability, and growth.

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Priscila Kobayashi, MBA

Engenheira de Planejamento (S&OP), Projetos e Produtos| Especialista em Produ??o e Qualidade| Gest?o de Processos e Melhoria Contínua
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To measure the impact of a product launch on your supply chain, assess changes in pricing dynamics and market positioning relative to competitors. Monitor fluctuations in product demand and market share to gauge the effectiveness of your supply chain in meeting customer needs and maintaining competitive advantage post-launch.

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6 Growth and scalability

A sixth and final way to measure the impact of a product launch on your supply chain is to plan and implement your growth and scalability goals. You can measure growth and scalability by tracking metrics such as customer acquisition, customer lifetime value (CLV), expansion rate, and scalability ratio. These metrics can help you measure and optimize your customer growth, retention, and revenue, as well as your ability to scale your product and supply chain operations without compromising quality or efficiency. Growth and scalability can also affect your supply chain by creating new opportunities, challenges, and requirements.

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Priscila Kobayashi, MBA

Engenheira de Planejamento (S&OP), Projetos e Produtos| Especialista em Produ??o e Qualidade| Gest?o de Processos e Melhoria Contínua
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To measure the impact of a product launch on your supply chain, track growth metrics such as sales volume, revenue increase, and market expansion. Evaluate the scalability of your supply chain operations to ensure they can accommodate increased demand and production levels efficiently, facilitating sustainable growth and long-term success.

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7 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?

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How can you measure the impact of a product launch on your supply chain?

1

2

3

4

5

6

7

1 Customer demand and satisfaction

2 Inventory and logistics

3 Costs and risks

4 Quality and feedback

5 Pricing and positioning

6 Growth and scalability

7 Here’s what else to consider

Product Development

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How can you measure the impact of a product launch on your supply chain?

1

2

3

4

5

6

7

1 Customer demand and satisfaction

2 Inventory and logistics

3 Costs and risks

4 Quality and feedback

5 Pricing and positioning

6 Growth and scalability

7 Here’s what else to consider

Product Development

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