Product portfolio

A broad product range inevitably includes many items that are in sporadic demand, often with high stock ranges. It is almost inevitable that such “bum articles” will be cross-subsidized by “racer articles”. As a result, the prices of the best-selling items have to be raised, and the risk increases that competitors will steal some of the lucrative range of best-selling items by offering lower prices.

Sales and logistical requirements are balanced in an optimal product range. However, finding the right balance is not trivial.

Using empirical value stream simulations, we work together with product management and sales to analyze the logistical effects of a changed product portfolio, prepare objective figures, use AI-supported algorithms to adjust the delivery readiness of your product portfolio across all items for optimum yield and thus help you to achieve a product portfolio that is balanced in terms of sales and logistics.