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

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36 B.3 COMPLEXITY REDUCTION FOR AN FMCG COMPANY COGS were cut by 3% for chocolate bars and confectionery COGS savings Chocolate bars Confectionery Achievable reduction [% of variants; EUR m] Achievable reduction [% of variants; EUR m] Cocoa mass 4 6 -33% 0.1 4 6 -33% 0.1 Chocolate mass 54 82 -34% 0.8 40 55 -27% 0.6 Fillings 62 102 -39% 1.7 41 60 -31% 1.3 Semi-finished (unpacked) 328 432 -24% 1.7 195 247 -21% 1.2 Primary packaging 598 712 -16% 1.0 358 279 -17% 0.6 Secondary packaging 48 67 -28% 0.2 43 49 -23% 0.1 Tertiary packaging 11 15 -30% 0.1 12 14 -40% 0.1 SKU 794 939 -15% 1) 0.5 360 405 -11% 1) 0.3 EUR 6.0 m/3.1% COGS EUR 4.4 m/3.5% COGS % of full potential: 22% % of full potential: 22% No of variants in 2010 Minimum achievable no. of variants 1) Affects supply chain and marketing only; purchasing and plant already taken into account in reduction of variants
37 B.3 COMPLEXITY REDUCTION FOR AN FMCG COMPANY Complexity management generated savings of EUR 17 m Total savings [EUR m] 5.0 17.2 10.4 1.8 Product portfolio optimization Product <strong>complexity</strong> management Target cost <strong>product</strong> development Total savings
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 and 34: Contribution margin 33 B.3 COMPLEXI
Page 35: 35 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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