We have developed a specific expertise to address this topic at the crossroad of Supply Chain and the other company departments : this consists in identifying the major axis of product complexity, to act on the major cost savings components, and then re-include in product costs the true impacts of complexity, thanks to revisited, activity-based, cost allocation keys.
These combined moves allow to strengthen your control on portfolio complexity, entering a virtuous circle : a product portfolio consistently revisited (lot size / product cost / market quantity alignment), a streamlined item creation process, for a monitoring on the long term of a profitable and attractive product offer.
Supply Chain as A Competitive Advantage …
Item Portfolio Complexity
The critical need to offer a larger and larger product portfolio to your customers seems impossible to reconcile with the not less critical need to reduce costs by reducing the product offer ? Revenue growth would come along with larger quantities in total, but lesss and less per item sold ? A highly transverse concern, widely shared by numerous companies !