{"id":539,"date":"2024-11-22T14:20:16","date_gmt":"2024-11-22T13:20:16","guid":{"rendered":"https:\/\/tenglerconsulting.com\/?p=539"},"modified":"2026-02-03T10:23:44","modified_gmt":"2026-02-03T09:23:44","slug":"your-product-portfolio-is-too-big-yes-i-know-time-to-stop-the-madness","status":"publish","type":"post","link":"https:\/\/tenglerconsulting.com\/en\/your-product-portfolio-is-too-big-yes-i-know-time-to-stop-the-madness\/","title":{"rendered":"“Your product portfolio is too big!” “Yes, I know …!” “Time to stop the madness!”"},"content":{"rendered":"

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“Your product portfolio is too big!”
\n“Yes, I know …!”
\n“Time to stop the madness!”<\/span><\/h1>
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Shifting market dynamics<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]Just a few months ago, before the world of disruption had really taken off, it was still claimed that the markets demand more products, more flexible and short-term planning, as well as higher customer service.<\/p>\n

Well, it seems that the big party is now over for once! Inflation and thus interest rates have risen, consumers are paying more attention to their spending and industry is confronted with sometimes considerably thinner order books. Inventories and cash flow are getting much more attention again.[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]02<\/span>[\/vc_column_text]

Customer service and differentiation<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]The planning world remains complex and a constant challenge for companies, if only because of the many disruptions. Customer service also remains important, but should be viewed in a differentiated way. For which products do customers need a very high delivery service and for which is a lower one sufficient? We have written several posts on this subject under Supply Chain Segmentation.[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” columns_gap=”60″][vc_column width=”1\/3″][\/vc_column][vc_column width=”2\/3″]
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<\/div>[vc_column_text css=”” text_style=”small-text”]Figure 1: BCG Matrix [1][\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]03<\/span>[\/vc_column_text]

The need for product portfolio optimization<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]BUT: Now it’s time to tackle the topic of product portfolio optimization! Just about every company supposedly does this all the time, but unfortunately far too half-heartedly. We at TenglerConsulting simulate the effects on inventories and then our clients’ eyes get very big. Because there is no bigger complexity (cost) driver along the entire supply chain than the product portfolio. From product development, to sales, purchasing, order taking, production, logistics, accounting, after sales…. practically all areas are involved. Actually, it is a mystery why companies drag “poor dogs” through the entire value chain and produce unnecessary costs, as shown in the BCG matrix as early as 1970.<\/p>\n

And ask yourself as a consumer whether your behaviour with regard to product variants has not already changed? Anyone who thinks just a little bit about sustainability should take this topic seriously!<\/p>\n

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Source:<\/strong>
\n[1]: BCG 1970. The Product Portfolio<\/a>. [Accessed: 10 November 2024].[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”3x” rc_link_color=”primary-1″ rc_link_hover_color=”black” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]04<\/span>[\/vc_column_text]

Our services<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]Find out more about our Product Portfolio Optimization<\/a> service and discover HERE<\/a> how we implemented it successfully.[\/vc_column_text][\/vc_column][\/vc_row][vc_section disable_element=”yes” el_id=”author”][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
<\/span><\/div>[\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” padding_bottom_multiplier=”3x” columns_gap=”60″ equal_column_height=”equal”][vc_column width=”1\/3″ full_height=”yes”]
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\"\"<\/div><\/div>\t<\/div>\r\n\t<\/div>\r\n<\/div>\r\n[\/vc_column][vc_column width=”2\/3″ full_height=”yes”][vc_row_inner height_ratio=”50″][vc_column_inner full_height=”yes”][vc_column_text css=”” el_class=”special-link”]Ready to strengthen your supply chain\u2019s sustainability through a stronger integration?<\/strong> Contact us at office@tenglerconsulting.com<\/a> to discuss how we can develop a planning framework\u2014supporting sustainable, efficient, and resilient supply chain practices made to your business needs.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner height_ratio=”50″][vc_column_inner vertical_content_position=”bottom” full_height=”yes”][vc_column_text css=”” text_style=”small-text”]About the author<\/strong>[\/vc_column_text]
<\/div>

Daria Reshetniak<\/span><\/h3>[vc_column_text css=””]T: +43 1 234 56 78
\nE: daria.reshetniak@tenglerconsulting.com<\/a>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][\/vc_section][vc_section el_id=”contact”][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
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Reflect on your product portfolio – fewer variants mean less complexity in your supply chain. Get active and take this issue seriously! Contact us at office@tenglerconsulting.com<\/a>\u00a0or connect with us on LinkedIn<\/a>.<\/span><\/h3>[\/vc_column][vc_column width=”1\/4″][\/vc_column][\/vc_row][\/vc_section]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

“Your product portfolio is too large!” This often-heard statement rarely leads to action. With rising costs and evolving consumer habits, now is the moment to simplify and optimize your value chain.<\/p>\n","protected":false},"author":4,"featured_media":2302,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-05-supply-chain-trends","grve-entry-item","grve-blog-item"],"yoast_head":"\nReduce complexity with an efficient product portfolio | Tengler Consulting<\/title>\n<meta name=\"description\" content=\"Reduce product portfolio complexity and increase efficiency now! 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