Strategic Product Segmentation for Enhanced Demand Management PPT

This PPT slide, part of the 27-slide Supply Chain Management - Sales and Operations Planning (S&OP) Improvement PowerPoint presentation, presents a framework for product segmentation using a visual representation of product volume and volatility across 2 distinct markets. The primary focus is on categorizing products into specific "buckets" based on their sales volume, revenue generation, and contribution margin. This method aims to enhance demand predictability and optimize inventory management.

In the first market, 4 categories are identified: high volume, low volatility (A); high volume, high volatility (B); low volume, high volatility (C); and low volume, low volatility (D). Each category is quantified by the percentage of Stock Keeping Units (SKUs), total volume, and revenue contribution. For instance, category A represents a small percentage of SKUs, but a significant contribution to volume and revenue, indicating stability. Conversely, category C, which has a high percentage of SKUs, shows a lower revenue contribution, suggesting that these products may require different management strategies.

The second market mirrors this structure, with similar categories, but varying metrics. Notably, category B in this market shows a higher revenue percentage compared to its SKU representation, highlighting the potential for strategic focus on these high-revenue products.

The slide emphasizes that the analysis of product segmentation can lead to tailored strategies for each category, which can ultimately drive better decision-making and resource allocation. This segmentation approach is particularly useful for executives looking to refine their product portfolio and improve overall operational efficiency. Understanding these dynamics allows for more informed strategic planning and resource management.

This slide is part of the Supply Chain Management - Sales and Operations Planning (S&OP) Improvement PowerPoint presentation.

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