By: Berlin Packaging Specialist
Date: October 28, 2019
As a consumer, I don’t really need all those SKUs of Colgate on the store shelf. Or all the flavors of Gatorade.
And certainly as someone who appreciates supply chain efficiency, I know all that complexity – from too many items, too many suppliers, or overly-wrought infrastructure – drives up costs. I see this issue in marquee items as well as in tail-spend (the likely large amount of small purchases companies make).
Removing this complexity and consolidating a supply chain is not one-size-fits all. There’s careful analysis required to find the right consolidations that does harm consumers, channel needs, system stability, or a company’s overall nimbleness. But, when done right, complexity reduction can drive improvements (sometimes substantial) in piece-price, materials flow, quality, branding, and staff effectiveness.
We have a white paper on Supply Chain Consolidation, which has a lot of ideas on how to approach this topic smartly.
What successes have you had in this area?