Portfolio Optimisation: The right balance between distinctiveness and feasibility

The dynamics of the food sector has been an important source of inspiration for many companies over the years. Increasing ‘share of stomach’ by winning customers with new, distinctive recipes and concepts is an ongoing challenge for food organisations. And so is the complexity that so often accompanies the expansion of a distinct range of product lines. Portfolio optimisation helps overcome these twin challenges.

Seizing commercial opportunities in the food sector

Taking advantages of openings in the market, such as new trends, changing consumer behaviour and insatiable customer demand is vital for any company, especially in the food sector. Barely a week passes without new prospects for revenue growth. However, turning those opportunities into new products is easier said than done.

New food concepts force change and bring new complexity to the internal organisation of a food producer. Introducing a successful innovation to the market requires collaboration between several departments and occasionally external partners. These changing aspects put pressure on operations and capacity, which in turn incurs a risk that market opportunities won’t beufficiently exploited.

Creating streamlined operations in sales and production

Offering a variety of product lines can boost revenues, but it can also lead to a fragmentation of volumes, complicated production processes, upgraded service levels, the diversification of raw materials, small production batches, advanced recipes and multiple packaging.

This additional complexity can manifest itself in many ways, so it can be hard to assess the impact objectively. Even so, it is possible to identify complexity in your product portfolio if you use the right methods, helping you to rationalise and harmonise your portfolio when needed.

Harmonising commercial goals and production resources

Complexity is not by definition a bad thing. A certain degree of complexity can enhance your company’s strategy and its product lines. The challenge is finding the right balance between distinctiveness, complexity, costs and feasibility. And that depends on the strategy and the product lines that you choose.

In a dynamic market like food, portfolio optimisation is no longer as simple as reorganising slow-movers. It requires an impartial analysis of all the complexities in order to combine commercial opportunities and streamlined operations with objective product choices. This will lead to harmony. A harmony that is in line with your company’s strategy.

At Gwynt, we understand the challenges facing the food sector. Our role is to help you strike the right balance between strategy and implementation and between commercial opportunities and streamlined operations. To help you create the distinctiveness you’re looking for while maintaining operational control.

Like to know more about our Portfolio Optimisation service?

We’d be happy to exchange ideas and explain our approach in a one-to-one meeting. Just contact us and ask to speak to a specialist.

MORE INFORMATION

Joris van den Hurk
(Partner)
+31 (0)6 261 089 69