Logistics product portfolio analysis and optimization
Why Every Product Has a Logistical Price
A bloated, poorly managed product portfolio costs money, time, and nerves – on multiple levels: from warehousing and manufacturing to order processing. Many companies underestimate how much unprofitable or rarely requested items burden their supply chain. Logistical product portfolio analysis and optimization brings transparency: Which items actually generate contribution margins? Which products create unnecessary complexity? Which assortment components can be reduced, bundled, or managed more intelligently? The goal is a focused assortment that is economically viable, logistically manageable, and customer-oriented.
Does this sound familiar?
– You feel your product range is too broad – but you don’t know where to start?
– Your warehouse is full, but you’re missing essential items?
– You’re subsidizing a multitude of slow-moving products with your A-list items?
– Manufacturing complexity is increasing because of the proliferation of product variants?
– You include items in your product range simply because “that’s what everyone does”?
Then a thorough portfolio analysis is worthwhile.
Our consulting approach: From analysis to product range strategy
By working with us, you benefit from a data-driven, logistics-focused analytical approach that holistically balances efficiency, complexity, and customer needs:
Profit-oriented assortment analysis
Using ABC/XYZ matrices and process cost data, we analyze which items truly contribute to value creation and where hidden loss-makers lurk in the portfolio.
Examining and resolving assortment constraints
We refute perceived product constraints with facts, through customer and shopping cart analyses. This creates room for genuine focus.
Optimize contribution margin
Based on realistic process cost structures, we recalculate your contribution margins and show which price adjustments, delivery levels or assortment decisions will lead to better results.
Lifecycle-oriented product portfolio management
Products not only need a successful launch, but also a timely discontinuation. We implement strategies for the systematic phase management of your product range.
Product range streamlining and variant management
Together with you, we reduce redundant variants, define delivery levels, and transform the product range into a focused, manageable structure. Where possible, we rely on modularization and postponement.
Examples of our consulting services
– ABC/XYZ-based assortment analysis
– Recalculation of contribution margins with process cost simulation
– Definition of differentiated delivery levels
– Variant management through modularization and postponement
– Product management throughout the life cycle
Typical questions we answer
– Which products truly contribute to value creation, and which only generate additional costs?
– How many variants can be managed effectively from a logistical perspective?
– Which delivery levels are economically viable for which customer segments?
– How do price adjustments or delistings affect the overall contribution margin?
– How can the number of variants be reduced without risking revenue losses?
What makes us different
We don’t just offer a sales-driven analysis of your portfolio; we provide economically and logistically sound optimization. We combine methods from product management, supply chain management, and simulation technology. We analyze not only “What sells,” but also “What does it cost to stock, plan, manufacture, and deliver?” Using digital twins, we simulate your product range structures and identify realistic potential for reducing complexity and improving results.
Focus on logistical controllability
We consider not only the margin, but also the logistical costs of each item.
Holistic view
Product management, supply chain management, sales and controlling work together to create the optimal product range structure.
Data-based segmentation
Our analyses are complemented by real-world movement data and process cost simulations.
Simulation instead of gut feeling
We simulate portfolio changes before implementing them in reality.
Anchoring in life cycle management
We don't think of portfolio management as a one-off task, but as a controllable, dynamic process.
A machine manufacturer reduced its product range by 45% with our help, without any negative impact on sales. The freed-up warehouse space was used to strategically expand the range of A-items.
Result:
−22% inventory costs, +15% delivery availability, 15% increase in revenue
FAQ – Frequently Asked Questions
What is a logistics portfolio analysis?
An analysis that links product range structure, economic efficiency and logistical controllability to reveal optimization potential.
How does your analysis differ from traditional product management?
We also consider storage and manufacturing costs, service targets, variant control and planning logic – not just sales and margin.
What specific goals can be achieved through portfolio optimization?
Less complexity, faster processes, lower inventory levels, higher availability, clearer product range strategy.
How do sales and customers react to product range adjustments?
With the right argumentation (e.g., through service improvements for A-items) and a sound data basis, high acceptance rates are achieved.
How complex is such a project?
The initial analysis typically takes 2–3 months. Initial results and quick wins can usually be implemented within a few weeks.
Is this also useful for complex variant products?
Especially then! Variant management and modularization are among our core competencies in such projects.