End of Season Planning
Thursday 24th May 2018
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Shorter Seasons, Greater Variety

These are the twin pressures to get slicker.

This particular Tool is a real eye opener, for many reasons:-

More effort goes into launch than EOL (End Of Life). Yet when everybody is equally good at launches, the winners will be those who have mastered EOL

The costs and hassle of EOL have been absorbed into the business. They don't generally get challenged. When they do, the challenger will likely be accused of 'managing with hindsight', and nothing will change.

While some of those costs are inevitable - just 'a cost of doing business' - some are not.

In our experience (and somewhat surprisingly) at slower rates of movement, more are avoidable. We think - but have not proved - that happens when rules of thumb which work for fast movers get applied across the board.

What might this cost?
IBM estimated that PCs decline in price (for a mythical constant spec.) by 4% compound a month.
Suddenly the true cost of leftovers became apparent to all …

Across a typical product range, the risk : reward ratio varies by 60:1. Slow movers have a huge chance of being leftover (and tiny chance of missing a sale); fast movers the converse.

With this insight and understanding of the value streams:-

  1. As a minimum you will correctly manage the cause.
  2. At best you may come up with completely different business models for the extremes of the range.

'One size' decidedly does not fit all!

I'd like to talk more about this. Please contact me

Great spirits have often encountered violent opposition from weak minds. A.Einstein
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