Product Portfolio Management

Managing your product portfolio is a key analytics step in planning world. If analytical priorities aren’t defined, then it is a starting point of a possible stressful work life.

There are number of ways to slice and dice your portfolio, for a bigger fortune 50 companies spread across multiple world regions each regional planning team has to consider global weightage of product’s revenue contribution as well as local pain points from a mid-volume product.

What criterions one should consider?

1. Historical Volume or revenue
2. Coefficient of variation (CV)
3. Intermittency
4. Stage in a life cycle
5. And few more …(remember we do not want to dilute the segmentation by considering all possible business 

Why we need to create segmentation?

This helps planners with planning priorities and brining attention of other stakeholders into consensus process. For an advanced demand planning team, segmentation helps to define the statistical modeling strategy e.g. for high volume products we can go with a custom advanced stat model for low volume a simple exponential would be a good starting point.