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- Product Profitability: How to Perfect SKU Rationalization
Better product management is not just about getting the right products to the right
customers profitably. It is also about making sure you dont have what you dont
need. Optimizing your product mix becomes increasingly complex in a world of fast
development cycles, short product lives, diverse customer segments, a myriad of
channels, and intense global competition. As a first step, your organization needs to
understand where it is making money.
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- Are you purchasing a profitability/cost management system?
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- If yes, what is your time frame for making a purchasing decision?
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We had been using profitability information for strategic decisions for 15 or so years,
But theres a big difference between occasional use of a system and bringing profitability
measures into the mainstream of the companys
- business.
- Rhett Bratt, VP of profitability analysis
Charles Schwab
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