We assist management teams with product strategy, design approach, analytics, and process enhancements to better control/manage complexity throughput product lifecycle – from concept to retirement – and avoid problematic inventory build-up and service decline:
Identified the sources and cost impacts of product complexity and quantified $38-40MM in savings opportunity from complexity reduction; initiatives included product simplification and harmonization (including packaging simplification), and optimization of the product launch process via cross-functional communications and use of standardized packaging
Established that product-centric engineering approach led to excessive uniqueness/lack of commonality among client’s 25+ product families and 200 models as ~75% of components were only used in 1 product family; developed platform-based design approach that explicitly considered design for manufacturing (DFM) requirements and created common component palettes
Captured $7MM in cost savings from eliminating poor-performing items and reducing cannibalization and determining most efficient catalog and web placement; reclassified 45,000 SKUs into 500 classes to align with how merchandisers thought about products and developed tools to review performance over time, by price point, by occasion, by performance, etc.
Achieved 28% improvement in on-time delivery and 25% reduction in inventory through differentiated operations and service strategy for the SKU segments; segmented SKUs based on qualitative factors (e.g., customer contracts, marketing strategy, and sourcing considerations) and a statistical score incorporating sales, margin, demand variability/frequency, etc.