Whale Curve: 20%–30% of products typically generate 300% of profits.
After years of line extensions, unfocused product and service expansion, and poor product lifecycle management practices, food and beverage businesses are drowning in too many products and services. The result: inflated costs, high levels of working capital, poor execution, and lack of focus. Customers suffer too—they’re on the receiving end of poor service levels and left to navigate an overwhelming portfolio. Getting your portfolio right is as much about keeping and growing your customers as it is about becoming a more profitable business.
These exercises frequently fall short—languishing in a never-ending debate between supply chain and marketing or reduced to a ’chop the tail’ exercise with no clear benefits. While leaders can see the opportunity that would come from simplification, how to address the situation seems elusive:
Wilson Perumal & Company is the leader in portfolio optimization, with unique methodology and deep insights, honed through many years of experience. Our difference includes:
A privately-held European manufacturer and distributor of consumer-packaged food sought growth and profitability in the center aisles of grocery over years. Instead, its trade spend and costs-to-serve increased and its growth outlook declined. We helped them rethink their strategy, identify where they were really making money, and determine the most advantageous path forward.
Results achieved included a 7% uplift in EBIT, 18% reduction in working capital, €2M+ divestiture opportunity, and 15% fewer brands and ~30% fewer SKUs.READ THE CASE STUDY
“WP&C is helping us transform our business. Their insights are phenomenal!”
“Wilson Perumal & Company's approach treats complexity as the enemy. Declaring war is the most direct route to an efficient, profitable enterprise. We declared war on the complexity in our portfolio, resulting in streamlined customer offerings and a more nimble business.”
“This was a quick and painless way to understand our true product profitability, and it challenges how we think about our business. I am extremely pleased with the results.”
“WP&C’s insights into our portfolio, cost structure and growth drivers have changed the way we think about our business. The brand management playbooks they developed for the business will be critical to how we make decisions going forward.”
“I have been more than pleased with what you have been able to accomplish in this time. Beyond my expectations...Spectacular!”
“Fantastic piece of work! You’ve really shed a lot of light on our business. Inmarsat will benefit enormously from your contribution and we will be using your structured thinking to guide us through the decision-making to come.”
“If you take all six times [past projects] where we looked at this, over the past ten years, and rolled them all up together, and multiplied by ten, it would still not be as good as this work.”
“Army personnel credit the collaboration between Joint Munitions Command, CAAA's higher headquarters, and consulting firm Wilson Perumal & Company for identifying areas to improve the munitions distribution process.”