There’s no getting round it: Product mix optimization involves changing the status quo. To complicate matters, there’s no single ‘correct answer’. For example, while the calculations may indicate that you should stop selling a product to a certain customer, the reality may be that this customer contributes to your bottom line in other, significant, ways.
So what’s the most effective way to arrive at the optimal product mix and gain the necessary buy-in?
Treat it as a process – rather than a mathematical puzzle with just one right answer.
At the heart of this process is the ability to create scenarios that incorporate relevant input from departments ranging from finance to operations. Instead of being presented with ‘the solution’, key decision makers get to review critical assumptions and explore the effects of various options on KPIs.
It’s hard to overestimate the importance of what-ifs – particularly when the results are captured in charts and diagrams that bring the implications of a particular product mix to life. So if you’re serious about optimizing your product mix, it’s time to get serious about giving yourself the ability to create scenarios – swiftly and effortlessly.
To learn more about product mix optimization that works, download your free briefing Breaking the product mix optimization barrier.