Mastering product complexity (PDF, 3316 KB) - Roland Berger

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34 B.3 COMPLEXITY REDUCTION FOR AN FMCG COMPANY The variant tree highlights how complexity increases with each link in the value chain – 60% of SKUs represent only 20% of the total volume Variant tree analysis Chocolate bars Confectionery Cocoa mass 80% of tonnage 80% of tonnage [# of variants] [%] [# of variants] [%] 5 83% 5 83% Chocolate mass Fillings Semi-finished (unpacked) Primary packaging Secondary packaging Tertiary packaging 30 37% 46 45% 134 31% 320 45% 23 35% 3 21% 17 31% 20 34% 62 25% 134 31% 13 27% 4 29% SKU 364 39% 182 45% Share of variants that account for 80% of volume produced Share of variants that account for 100% of volume produced
35 B.3 COMPLEXITY REDUCTION FOR AN FMCG COMPANY The single variant cost model enables complexity-related cost increases to be evaluated Single-variant complexity cost model PURCHASING PURCHASING 188 6% PLANT 99 21% SUPPLY CHAIN 39 34% Cocoa beans & butter Milk powder 69 22 2% 1% Cocoa mass Chocolate mass Fillings Primary packaging Semifinished Secondary packaging Tertiary packaging Co-packing 7 100% Sugar Hazelnuts Other raw materials Packaging materials 17 9 33 33 1% 4% 19% 6% 11 16 19 5% 23% 31% 25 19 23% 19% 6 4 15% 11% Warehousing 21 29% Transport 11 2% R&D 4 25% MARKETING TOTAL 330 TOTAL COST OF COMPLEXITY EUR 47 m 14% FTE impact xx COGS [EUR m] xx Share of COGS when more than one variant is produced D&A impact 5 17% 19% 27%
Page 1 and 2: Mastering product complexity Düsse
Page 3 and 4: A. Key findings
Page 5 and 6: 5 A. KEY FINDINGS Product variety h
Page 7 and 8: 7 A. KEY FINDINGS Product variety a
Page 9 and 10: 9 A. KEY FINDINGS In the discrete i
Page 11 and 12: 11 A. KEY FINDINGS Four optimizatio
Page 13 and 14: 13 A. KEY FINDINGS Relevance of opt
Page 15 and 16: 15 A. KEY FINDINGS Automotive and F
Page 17 and 18: B. Examples of product complexity m
Page 19 and 20: 19 B.1 CUSTOMER-ORIENTED CAR RETAIL
Page 21 and 22: 21 B.1 CUSTOMER-ORIENTED CAR RETAIL
Page 23 and 24: B.2 Modularization strategy for a l
Page 25 and 26: 25 B.2 MODULARIZATION STRATEGY FOR
Page 31 and 32: B.3 Complexity reduction for an FMC
Page 33: Contribution margin 33 B.3 COMPLEXI
Page 37 and 38: 37 B.3 COMPLEXITY REDUCTION FOR AN
Page 39 and 40: 39 B.4 PRODUCT VALUE MANAGEMENT FOR
Page 41 and 42: 41 B.4 PRODUCT VALUE MANAGEMENT FOR
Page 43: 43 B.4 PRODUCT VALUE MANAGEMENT FOR

Mastering product complexity (PDF, 3316 KB) - Roland Berger

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