Our approach was split into three distinct phases which allowed for a lean but holistic analysis of both the product portfolio and customer base. By collaborating closely with our client across different hierarchy levels, we could deliver swift value generation.
Phase 1: Top-down analysis
Product portfolio:
We conducted in-depth analyses of the product portfolio’s profitability by revising the internal cost accounting and introducing an analysis tool that enabled us to identify critical products
Customer base:
We categorized the customers according to their profitability, sales volume and CAGR. Those customers below the pre-defined thresholds were further analyzed
Phase 2: Bottom-up validation
Product portfolio:
Together with product experts and in the context of the top-down analysis, we defined product actions focusing on what products to retain, what products to optimize and what products to eliminate from the portfolio.
Customer base:
We jointly simplified sales channels organizing them per customer segment along the three categories direct sales, inside sales and indirect sales channels.
Phase 3: Implementation
Based on the insights from the top-down and bottom-up analyses, we defined an implementation roadmap including onboarding responsible stakeholders for both the product portfolio and the customer-based streams.
