• Save
Webcast: Identifying and Managing Products at the End of Their Life Cycle
Upcoming SlideShare
Loading in...5
×
 

Webcast: Identifying and Managing Products at the End of Their Life Cycle

on

  • 932 views

Thanks everyone who participated in this webcast from The Association of International Product Marketing and Management (AIPMM). ...

Thanks everyone who participated in this webcast from The Association of International Product Marketing and Management (AIPMM).

J.F. Ouellette shares insights on end-of-life (EOL) processes to reduce the accumulation of obsolete products. This topic has traditionally not taken up a lot of bandwidth in discussions. It is however a source of reduced working capital and improved operations. Organizations look to product management to drive product rationalization as a way to increase business efficiency.

About the Speaker:
J.F. Ouellette is the founder and President of QUAD. He has worked over 25 years in various functions within industry. His roles encompassed strategic and tactical business development, NPD, needs analysis, product management and marketing with manufacturers Ansell; Kappler; E.I. DuPont; North Safety and finally Honeywell International. His expertise is called upon globally. He holds a degree in Commerce from Concordia University and is an alumnus of the McGill University Executive Institute, both in Montréal. He is a Certified Product Manager (CPM) and SixSigma green belt.

Upcoming Events
For more information regarding certification courses near you, contact Hector Del Castillo at http://linkd.in/hdelcastillo.

About AIPMM
The AIPMM is the hub of all things product management. It is where product professionals go for answers. With members in over 65 countries, it is the worldwide certifying body of product team professionals.

It is the world's largest professional organization of product managers, brand managers, product marketing managers and other product team professionals who are responsible for guiding their organizations, or clients, through a constantly changing business landscape.

AIPMM's certification programs are internationally recognized because they allow product professionals to demonstrate their expertise and provide corporate members an assurance that their product management and marketing teams are operating at a high competency level.

Visit www.aipmm.com.

Upcoming Webinars: http://aipmm.com/aipmm_webinars/
Subscribe: http://www.aipmm.com/subscribe
LinkedIn: http://www.linkedin.com/company/aipmm
Membership: http://www.aipmm.com/join.php
Certification: http://aipmm.com/html/certification
Articles: http://www.aipmm.com/html/newsletter/article.ph

Statistics

Views

Total Views
932
Views on SlideShare
817
Embed Views
115

Actions

Likes
0
Downloads
0
Comments
0

1 Embed 115

http://www.aipmm.com 115

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Webcast: Identifying and Managing Products at the End of Their Life Cycle Webcast: Identifying and Managing Products at the End of Their Life Cycle Presentation Transcript

  • © AIPMM 2013 www.aipmm.com AIPMM Webinar Series www.aipmm.com
  • © AIPMM 2013 www.aipmm.com
  • © AIPMM 2013 www.aipmm.com AIPMM: @AIPMM J.F. Ouellette: @QUADmarketing Hector Del Castillo: @HMDelCastillo Tweet!
  • © AIPMM 2013 www.aipmm.com • Two free 30-minute consultation sessions Participate and Win!
  • © AIPMM 2013 www.aipmm.com Today’s Speaker Moderator: Hector Del Castillo, CPM, CPMM Product Innovation Consultant Speaker: J.F. Ouellette, CPM President & Founder QUAD Product Optimization, Inc. jfouellette@quadmarketing.co www.quadmarketing.co
  • © AIPMM 2013 www.aipmm.com FEATURED PRESENTATION
  • QUAD PRODUCT LINE STRATEGY AND OPTIMIZATION CONSULTANT P.A.O. Identify and manage products at EOL (c) 2013 QUAD – Montréal, Canada - Proprietary 8
  • (c) 2013 QUAD – Montréal, Canada - Proprietary9
  • Why do we optimize product lines?10 (c) 2013 QUAD – Montréal, Canada - Proprietary Planned abandonment means rejecting the continued use of tactics, strategies, or techniques that brought your company success in the past and, instead, continually establishing new means by which your company can attain success since, as is often the case, these "tried and true" methods of success are no longer useful
  • Reality check  Who is opposed to removing obsolete products?  Is elimination loosing products a positive thing?  Should our sales force sell declining products?  Who handles EOL in our organization?  Do we take orders for discontinued products?  Who is against product rationalization?  How much of a career builder is this? 11 (c) 2013 QUAD – Montréal, Canada - Proprietary « Today we’ll look at rationalizing our product line. Any ideas on how to proceed? »
  • P.M. focus by industry New products Mature Declining & EOL New products Mature Declining & EOL 12 (c) 2013 QUAD – Montréal, Canada - Proprietary High-tech industry Traditional industry
  • How P.M. impacts the organization (c) 2013 QUAD – Montréal, Canada - Proprietary 13 The optimal number of SKUs is based on the;  Business plan  Customer needs  Company ability to supply  Contribution from each SKU
  • Indications of a problem  Product proliferation  Don’t know which ones are financially and strategically contributing…  … which can provide more and…  …which are a drain on your business  You want to reduce your inventories but maintain customer service  You need cash to invest in other areas  Old inventory in the warehouse  Using an average costing method -500 0 500 1000 1500 2000 2500 3000 Product A Product B Product C Product D Product performance $ Sales $ Gross Margin $ Operating income $ 14 (c) 2013 QUAD – Montréal, Canada - Proprietary
  • The hidden costs of a SKU  Inventory warehousing  Yearly cost of $1 inventory?  S.G. & A.  Manufacturing Set-up  Logistics  Customer service COGS 61% Selling 15% Marketing 5% Warehousing and handling 5% Administrative 5% Operating income 9% SKU Cost elements 15 (c) 2013 QUAD – Montréal, Canada - Proprietary
  • The cost of not acting 16 (c) 2013 QUAD – Montréal, Canada - Proprietary Today’s operating income 16 Operating income per SKU The future Operating income per SKU
  • The optimized product line 17 (c) 2013 QUAD – Montréal, Canada - Proprietary  Simplified product offering  Reduced operational costs  Removed non performing SKUs  Improved product positioning  Increased cash flow  Reduced cost of sales  Increased prices
  • Levels of analysis (c) 2013 QUAD – Montréal, Canada - Proprietary 18  Financial  Sales  Margins  ROI  Strategic  Fit  Product positioning  Product phase  Operational  Cost to serve  Inventory turns  Set-up cost  Ease of replacement Quality of analysis Financial data Strategic data Operational data
  • The Four Step Process (c) 2013 QUAD – Montréal, Canada - Proprietary 19 • Conserve • Improve • Remove • Market side • Supply side • Financial analysis • Strategic fit • Risk / rewards • Sales data • Strategic data • Operations data Step 1 Gather appropriate data Step 2 PAO BI tool Step 3 Determine action plan Step 4 Execution 1 2 34
  • From subjectivity to usable data (c) 2013 QUAD – Montréal, Canada - Proprietary 20 Decision ProductName Product number Inventory value on hand US$ Units on hand Sales US$ Margins US$ Main supplier name Remove AA A 500 20 1000 200 Remove BB B 1500 100 10000 4000 Improve CC C 600 50 2000 200 Conserve DD D 3700 750 5000 1750 Remove HH H 28000 2500 75000 32250 Improve FF I 500 200 5000 3100 Conserve JJ J 2000 80 7500 2025 Remove KK K 200 10 500 70 Improve EE E 750 300 6700 2211 Improve FF F 1000 100 2600 624 Remove GG G 1200 15 24000 5040 Products Financials Strategic Operations A 0 % 0 % 0 % B 86 % 30 % 30 % C 11 % 60 % 60 % D 76 % 100 % 100 % E 86 % 27 % 33 % F 30 % 56 % 51 % G 55 % 54 % 72 % H 100 % 41 % 18 % I 76 % 49 % 63 % J 60 % 47 % 67 % K 0 % 56 % 42 %
  • Organizational Challenges  Products are like best friends and family pets  Sales usually wants to have all the products available  Trade offs: Top line vs bottom line impact  Designed to be sustainable  The process reduces emotional decisions  Customers need to be kept informed  All departments are involved  Top management has to support the process 21 (c) 2013 QUAD – Montréal, Canada - Proprietary
  • Speaker Bio J.F. Ouellette, CPM President & Founder QUAD Product Optimization, Inc. • Over 25 years in various functions within industry. • Roles encompassed strategic and tactical business development, NPD, needs analysis, product management and marketing with manufacturers Ansell; Kappler; E.I. DuPont; North Safety, and Honeywell International. • Holds a degree in Commerce from Concordia University and is an alumnus of the McGill University Executive Institute, both in Montréal. • Certified Product Manager (CPM) and SixSigma green belt.
  • © AIPMM 2013 www.aipmm.com Q & A Moderator: Hector Del Castillo, CPM, CPMM Product Innovation Consultant Speaker: J.F. Ouellette, CPM President & Founder QUAD Product Optimization, Inc. jfouellette@quadmarketing.co www.quadmarketing.co
  • © AIPMM 2013 www.aipmm.com Upcoming Courses Course & Location Dates Days Time ACPM® Certification Prep Course & Exam Seattle, WA McLean, VA Aug 26, 2013 Sep 16, 2013 M 8:30 am – 5 pm CPM® Certification Prep Course & Exam Seattle, WA McLean, VA Aug 27-28, 2013 Sep 17-18, 2013 T, W 8:30 am – 5 pm CPMM® Certification Prep Course & Exam Seattle, WA McLean, VA Aug 29-30, 2013 Sep 19-20, 2013 Th, F 8:30 am – 5 pm Contact Melissa Holtzer, melissa@280group.com, for more information. Additional certification prep courses are available in Austin, San Jose, and London.
  • © AIPMM 2013 www.aipmm.com Upcoming Courses Course & Location Dates Time CIL® Certification Prep Course & Exam Athens, Greece Oct 10-11, 2013 9 am – 6 pm CPM® Certification Prep Course & Exam Athens, Greece Singapore Oct 8-9, 2013 Oct, 2013 9 am – 6 pm 8 am – 5 pm CPMM® Certification Prep Course & Exam Athens, Greece Singapore Oct 14-15, 2013 Oct, 2013 9 am – 6 pm 8 am – 5 pm Follow the links provided to get more information regarding these courses.
  • © AIPMM 2013 www.aipmm.com For More Information About • AIPMM membership benefits • Certification courses near you • How to prepare to take a certification exam Hector Del Castillo, CPM, CPMM Senior Product Innovation Consultant hmdelcastillo@aipmm.com linkd.in/hdelcastillo
  • © AIPMM 2013 www.aipmm.com Please Join Us Again! AIPMM Webinar Series: Going from Messaging Nightmare to Messaging Delight, Friday, Aug 2nd, 12 pm ET http://aipmm.com/aipmm_webinars/ Global Product Management Talk: http://www.blogtalkradio.com/prodmgmttalk Stay Informed! Newsletter: http://www.aipmm.com/subscribe LinkedIn: http://www.linkedin.com/company/aipmm Membership: http://www.aipmm.com/join.php Certification: http://aipmm.com/html/certification/