A high level of sales is one of the main goals of any enterprise that is engaged in production. But in order to feel confident in the conditions of the modern market, it is necessary to offer customers not only quality, but also a wide selection of relevant positions. This goal will help to achieve a constant analysis of the range and structure of products. Moreover, such a technique will be relevant not only for large manufacturers, but also for small businesses.
What is an assortment?
So, the implementation of the plan for the range is one of the key conditions for the full satisfaction of customer needs. This term itself is used to determine the list of product names that a particular company produces. At the same time, the volume of goods is delineated by type.
The range can be group, intragroup and complete. The essence of the analysis is reduced mainly to determining the degree of obsolescence of the product and its homogeneity parameters.
Within the framework of this topic, it is worth recalling the nomenclature, which is a list of the names of goods manufactured by the company, as well as their codes. The latter are set for each specific type of product according to OKPP (All-Russian Classifier of Industrial Products).
Why you need to evaluate the range
Production analytics is needed to get the average number of types of manufactured goods. Analysis of the range and structure of products allows you to competently organize the process of expanding the list of products, which ultimately depends on brand loyalty from customers with different preferences.
One of the results of the above analysis is the differentiation (separation) of one type of product in accordance with the different tastes of the target audience. We are talking about the production of goods that are close in their consumer qualities and are able to replace each other, but nevertheless having certain differences. This approach allows you to gain an advantage in the market in the face of intense competition.
Thus, in order for the process of differentiation to be effective, a competent analysis of the product range is necessary.
Commodity Nomenclature
To better understand the essence of working with the nomenclature, it makes sense to pay attention to the features of the product line. This term is used to define the product range. In fact, we are talking about a group of products that are closely related to each other due to close areas of use and, as a result, are intended for the same target audience. Trading enterprises used for their implementation (shops, network stores) are also of the same type. For the assortment range, one price range is used.
It is from the various lines of products that the product range consists. Accordingly, without understanding what the assortment is made of and how it is characterized, it will be extremely difficult to analyze it.
Product Nomenclature Characteristics
If you try to study any group of different assortment lines, you will find that it has certain characteristics: saturation, breadth, harmony and depth.
The saturation of the commodity nomenclature is nothing more than the total number of individual goods of which it consists.
Latitude is the next characteristic, without which it will be difficult to analyze the range of products, and it means the total number of product groups that a particular company produces. An example is a store selling, say, food products, but at the same time offering customers different types of goods: bakery products, meat products, etc.
The harmony of the commodity nomenclature should be understood as the proximity of the form of end use of products belonging to various assortment groups. Distribution channels, requirements for the organization of production and other indicators may also be similar. Here again, an example of a grocery store is appropriate where you can buy all the necessary ingredients for preparing, say, a first course.
Considering the analysis of the range, you can not ignore the depth of the product group. In this case, we are talking about various options for the supply of individual goods that are in the same group.
Cost
Analyzing the range of goods, the price must always be taken into account, because the level of sales of a particular product depends on it in many respects. Moreover, in the framework of production, the cost of finished products can be displayed in two forms: commercial products and gross.
If we consider gross, then it is necessary to include finished goods released by all departments of a particular enterprise for use within the company itself (own non-industrial units, capital construction, etc.).
An example is the semi-finished products of our own production, which are subsequently released to the side for their capital construction or given to divisions of a non-industrial type company.
Commercial products, unlike gross, include only incomplete product. The cost of such products is taken into account at those enterprises where the production cycle does not exceed 12 months. This condition is important, because in cases where the output of finished products lasts more than a year, goods not yet released may be subject to significant price fluctuations.
Product structure
Analysis of the assortment of the enterprise will not be complete without taking into account this factor. The structure of goods should be understood as the ratio of different types of finished products against the background of their total production.
The implementation of the plan on the structure of products means that the originally planned ratio of its types in the finished product release has been preserved. If the plan is implemented unevenly, this will lead to a noticeable deviation from the planned structure of the assortment, which, in turn, will violate the conditions that are taken into account when comparing the economic indicators of the enterprise.
To eliminate structural shifts, they need to be able to calculate and calculate. The most suitable for achieving such a goal is the direct counting method for all goods, as well as the average price methodology. Using this approach, one can avoid the influence of undesirable changes in the assortment structure on economic indicators.
Product Range Analysis
The analysis process itself begins with a study of the fact how the dynamics of commodity and gross output changes, and an increase is recorded and the index is calculated.
Operational analytics is also performed, for which data are used for the week, ten days, month and, accordingly, the quarter. Along with this, the process of working with product lines includes an analysis of the implementation of the plan for the assortment itself and the nomenclature.
It is worth recalling that under the nomenclature you need to understand the list of names of various products, as well as their codes, which are set according to the classifier of industrial products.
Studying the analysis of the assortment of goods, you need to remember the following: when the degree of fulfillment of the plan is evaluated, the planned output of various goods and the actual result are compared. Thus, the plan can be considered fulfilled only when all the components of the assortment were produced in the right amount.
If the necessary indicators were not achieved, the factors that caused this result are identified. By the way, they can be both internal and external.
The first can be attributed to shortcomings in the organization and subsequent management of the production process, the condition of equipment, etc. The second group of reasons is reduced to a change in demand for certain types of goods, market conditions and the late launch of production facilities.
Analysis method
The analysis of the assortment and its structure begins with an assessment of how well the plan for the production of various product lines has been completed. As described above, this indicator is determined by comparing the actual release of goods (main types are taken into account) and the one that was planned.
To perform this task - a competent assessment - several proven methods help:
- calculation of the coefficient of fulfillment of the plan for the production of the necessary types of products;
- the method of least interest;
- determination of the specific gravity in the general list of goods, on the basis of which the production plan was carried out.
These methods will allow for a competent assortment analysis. and, accordingly, they will make production “sharpened” for current positions.
Product line formation
In fact, analytics has a direct impact on the fact of what the range will be. It is for the competent formation of product lines that the degree of relevance of various types of products, as well as the need for their diversification, is considered.
The relevance of such processes is determined by the need to provide the producer with the set of goods that the consumers need, in a timely manner, otherwise competitors will receive a tangible advantage.
Against the background of such goals, an analysis of the structure of the assortment should include the distribution of products into categories such as old and new. It is also important to take into account other characteristics that are directly related to the finished products: serial and single production, license, know-how, ordinary goods and high technology.
Before forming an assortment, a company usually develops a concept that will optimize the production of a particular product line. The fact that the concept is necessary is obvious, because it is designed to identify products that are as appropriate as possible to the diversity and structure of customer demand. The enterprise will subsequently be oriented towards the production of precisely these products.
How is the concept formed
In order to develop a relevant concept, an analysis of several indicators is carried out:
- price level for a specific assortment group;
- the ratio of the value of goods;
- refresh rate and assortment level.
In most cases, the forecast is focused only on determining the development trend of various product lines. A trend should be understood as a change in the assortment structure of demand and, as a result, of product supply.
Against the background of this information, it should be noted that the analysis of the assortment, its planning, formation and management of it is a complex of processes that never stop. That is, work with the assortment is always conducted and can stop only if a specific product group is withdrawn from production.
Formation principles
If we consider the analysis of the assortment and structure of products on the example of an enterprise belonging to large manufacturers, then it is worth paying attention to the common algorithm of actions used by such companies. Its essence boils down to several key stages of analytics.
First of all, an assessment is made of the existing demand for manufactured products. Then follows the organization of the most efficient use of company resources (technological, financial, raw materials, labor and technical).
Next comes the stage of assortment formation, which includes the implementation of four tasks:
- identification of prospective and current needs of customers;
- determination of how competitive are manufactured goods and planned production;
- the study of the life cycle of goods in the market and the adoption of measures such as the introduction of new more relevant positions, as well as the elimination of obsolete product lines;
- at the end, an assessment of the possible consequences of the changes is carried out (the level of risk and economic efficiency are assessed).
Analysis of the assortment of the store is carried out according to a more simplified algorithm (issues related to the production process are not taken into account).
Quality
In order for the products to meet the needs of customers, it is necessary not only a variety of goods, but also a decent level of quality.
To verify this indicator, the individual qualities of various product lines are evaluated. Attention in this case is drawn to the following product characteristics:
- reliability (maintainability, durability, reliability);
- aesthetics (design, appearance, ergonomics);
- usefulness (iron content in ore, fat content of milk, etc.);
- manufacturability (energy and labor).
An analysis of the quality of the assortment by evaluating these characteristics allows you to get an idea of how the assortment meets market expectations. Without such analytics, production may end up being inefficient.
Summary
Analysis of the range and structure of products on the example large and small enterprises allows us to conclude that the urgency of this stage of work with production is obvious. Without a competent assessment of various indicators related to product lines, it will not be easy to take a confident position in a particular market segment.