Portfolio
Over time a single product becomes a portfolio. Whether it is different sizes or iterations of the product, eventually a number of SKUs will have to be managed. Understanding how this portfolio is understood by the customer is important for optimizing the products offered.
As innovation occurs, what do you do with the previous models? Adding to and culling your products is necessary to maintain the health of the supply chain, simplifying the sales message, and keeping a clear offering to your customers.
Portfolio management requires a large amount of communication. Any time the product offering changes internal as well as external customers have to be educated on the reasons for and the replacements made from the changes. Without this process the portfolio can become bloated and complex leading to customer confusion and ultimately less sales.