Product Management2017-07-10T09:34:52+00:00

Product Management


In today’s economy, there’s strong pressure to reduce inventory in order to achieve a better working capital position. In the first instance, organizations that want to gain better fundamental control of their stock need to improve their life cycle management. A good way of doing so is to include a product management review in the Sales and Operations Planning (S&OP) cycle.

By structurally involving product managers in the supply chain process, you can significantly reduce the risk of obsolete stock or service issues. According to estimates, 7 out of 10 products are over-forecast while 3 out of 10 products are under-forecast. When product managers are asked to repeatedly validate the forecasts for New Product Introductions (NPIs) and to substantiate the longer-term expectations, the forecasting becomes more precise. And by regularly stimulating them to phase out older, infrequently rotating products you stay in control of your product portfolio. Ultimately, every organization’s goal is to get the best bang for its buck – in other words, to generate the best margin per invested dollar.

To ensure smooth NPIs, better End-of-Life (EOL) management and to improve the forecasting of upcoming promotions, projects and tenders, it is crucial to secure the right sponsorship within your organization. Supply Chain can find a good ally in Finance since they like all resources to be used efficiently and are keen to lower the working capital tied up in stock. Furthermore, it is essential to clearly define the product management review meeting topics, to quickly prove the value via template reports and a pilot, and to continuously optimize by sharing best practices within your organization.

Solventure can help you to navigate through the different steps of the Stage-Gate process, a method developed by Robert Cooper to manage new product innovation excellence. Some steps are more important to the supply chain than others. We support you by keeping a clear focus and by stimulating your scenario-management thinking to balance the risk of having either too much or too little inventory. We are also experienced in ranking products based on the margin per invested dollar, which is useful for a Stock Keeping Unit (SKU) rationalization approach. Moreover, we can utilize the Arkieva suite to make forecasts on an aggregated level, thus maintaining longer-term accuracy.

Are you curious about how easily you can benefit from including the product managers in your S&OP cycle? Read our white paper and learn how product management holds three important keys to a better-balanced service-cost-cash supply chain triangle.




Reducing the risk of obsolete stock and out-of-stocks will reduce service issues. Questioning the Minimum Order Quantities (MOQs) leads to improved flexibility and hence benefits the customer.



Well-thought-out NPIs, solid SKU rationalization as part of EOL management and better long-term event forecasting will prevent the stock capital from skyrocketing.



Striving for more return per invested dollar – rather than setting sales as the ultimate objective – will automatically lead to a better Return on Capital Employed (ROCE).

Interested to learn from other
Supply Chain Professionals?

Want to be informed about the next webinar on Product Management?


the video

In this webinar Prof. Dr. Bram Desmet, Managing Director of Solventure will talk about “Product Management Review as an essential part of your S&OP process’.