Number of SKUs and Business Complexity

From a broader perspective, I have included a link to a recent article I wrote titled Similarity Heuristics, Iterative Methodologies and the Emergence of the Modern Supply Chain.

Specifically, you have multiple stakeholder streams (i.e. suppliers, warehousing, couriers etc.) each of which have unique operational attributes that impact collective performance and determine optimum results.

Far too often the methodologies that are employed to address these "complexities" attempt to establish what I call a static model in which a single stream of atributes are analyzed and a resulting standardized (nee SCOR or Six Sigma) model is established. From that point on, the real-world business, usually through a change management strategy, is "bent" to fit or adapt to the model.

Unfortunately, attributes within an individual stakeholder stream are rarely static. The problems are then multipled or made more complex by the introduction of multiple stakeholder streams in which a different standard has been establsihed.

This as well as the other articles I have written on this subject over the years refer to this approach as an equation-based methodology. It is also the main factor in the high rate of ERP/eProcurement initiative failures world wide. (Note: industry studies estimate the rate of failure, which is based on a projects inability to deliver the expected results, to be approximately 85%.)

Once again, this is a broader view of your question. But it is nonetheless a solid starting point.

In terms of the specific elements associated with the SKU creation/maintenance question, including the parent-child SKU dilemma, I can provide you with case studies involving high demand projects. While these examples deal with high volume, Indirect MRO materials, methodologies such as the development of Strategic Geographic Suppliers (SGS) and the utilization of advance polling algorithms can provide a framework for similar results in the Direct Material arena. Refer to the third URL Link I have provided titled The Number 1 Question for one such example.

In the end, your ability to think outside of the framework of that with which you are most familiar and most comfortable will determine your ultimate success.

Links:

To obtain copies of the reference materials, please contact the author.

Number of SKUs and Business Complexity - To learn more about this author, visit Jon Hansen's Website.

Like this article? Share it with your friends

Article Tags:

---

	No article feedback found.
	Leave Your Feedback

---

Marcus Arkan Marcus Arkan currently serves as the President/Principle Broker of Syndicate Mortgages Inc. After working with a number of Canada's top financial institutions, the experience and knowledge he gained throughout his professional career combined with his drive and entrepreneurial spirit led him to develop his own company. The operation began in 2003 in the basement of his home and now has flourished into a successful corporation with a head office in one of Metropolitan Toronto's busiest sectors and 10 branch locations employing over 100 mortgage professionals. His organization is now one of Ontario's leading mortgage brokerages specializing in residential, commercial, and construction financing. He holds the designation of Accredited Mortgage Professional from the Canadian Association of Accredited Mortgage Professionals. This allows him to differentiate himself from other mortgage originators and demonstrates his commitment to the highest standards of industry performance. For more information on Mr. Arkan and his Syndicate Mortgages Inc., please visit www.syndicatemortgages.com. - Visit Marcus Arkan's Website

Michiel Jonker As a Certified Information Systems Auditor, Michiel assists businesses in a professional capacity by evaluating the threats to their businesses. He acquired the necessary knowledge, skills, and techniques to minimize a business owner’s risk of business failure and to maximize his chances of high growth and success. He strongly believes that you CAN maximize your chances of business success, by implementing the business solution he has advocated for more than 12 years in your business plan and planning. Michiel has decided to share his experience with business owners by putting almost everything he knows in a business plan and survival guide (compiled in an e-book format) and written as a high growth SMB coaching course for SMB business owners, directors and managers - titled as the “Survival Kit for Small and Medium Businesses - Profit from your Business Risks!” According to Michiel, his goal was to add new techniques to a business owner’s business planning survival kit and instruct him or her in using these in the future - without any help from a consultant! For more information about the benefits of implementing profit protection planning in your business, please visit: http://www.business-around-the-globe.com - Visit Michiel Jonker's Website

David Barr David Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website

Anne Barr Anne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website

Casey Gollan Casey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website

Kim Castle With nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website

Jeff Foster WebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas.  We specialize in internet consulting & internet marketing.  - Visit Jeff Foster's Website

David Acheson David Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns.  David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website

To learn more about the Evan Elite Author Program please contact us.

Jon Hansen Subscribe to Jon's articles (Visit Jon's Website) Personal Profile: http://www.linkedin.com/in/jwhansen Jon Hansen is a Platinum author on EvanCarmichael.com

Jon Hansen's Complete List Of Small-Business-Consulting Articles Name Email If you enjoyed this article, get Jon Hansen's Complete List of Small-Business-Consulting Articles For FREE! More Jon Hansen Latest PWGSC Press Release Changes Little Shared Services and Outsourcing Networks The Year in Review and the Year Ahead The Greening of Procurement How Social Consciousness is ReShaping Procurement Practices Are Multiple Supply Chains Important Survey Response 1 Guest Post Why Optimization Matters Moving Beyond Price Driven Auctions Why Six Sigma Initiatives Fail A PI Q and A The Future of Business Intelligence Did Gartner Get It Right Socially Branded Journalism Crossing the Generational Divide Are Multiple Supply Chains Important Survey Response 6 Are there 80000 reasons that Alcock borrowed a page from Gershon