Product Portfolio Management Sets Structure for SKU Optimization

Gartner 20 Jul 2021 10:00

A great many calls I take are on one of two topics: product portfolio management or SKU optimization.

SKU optimization is a more appealing way of saying “SKU rationalization,” or the retirement of products from portfolios, a phrase that often sends commercial team into full defensive mode. It’s easy to see why these two topics are linked to one another, but I find that many companies want to start with SKU optimization as a foundation for adopting more advanced product portfolio management practices. In fact, it’s the art of product portfolio management that is needed to set the structure for SKU optimization.

While supply chain doesn’t typically own strategic portfolio management, supply chain leaders are often tasked with leading SKU health assessment and retirement process definition projects. These projects cannot be truly successful unless they are conducted within a larger strategic framework that sets the guardrails for defining what constitutes a healthy SKU in the context of a product portfolio.

Continue reading original article...


You may also like