Why is "Product Line Optimization" important?
"Product Line Optimization" is important because bloated product lines suck up resources and cost companies money in ways that are difficult to quantify.
A few examples are:
- Service problems due to the complexity of managing inventory
- Plant downtime due to short runs, infrequency of production, and changeovers
- Raw material and finished goods inventory costs
- Lack of focus on winning products
Unfortunately, the pain is felt in operations, but the cure rests in marketing and sales. This is why companies often struggle to trim down their product portfolio. An independent view and a proven process can help break through the stalemates that often turn “SKU Rationalization” projects into “SKU Justification” projects.
