SKU portfolio optimization for a large enterprise technology company

Abstract

The aim of this project is to develop a framework for optimizing the portfolio of HPE. We have taken up the special case of SSDs to simplify the framework. We start by studying the evolution of the memory industry, the product components and the challenges in the Configure to order industry. We also look at the current literature available on the processes used by different companies to optimize their SKUs. We look at companies like Dell, Intel, P&G and Best Buy to understand their SKU policy. Based on a qualitative study of the future trends in the industry, we try to build a Growth vs volume matrix. This gives us an idea of what the future of the industry will look like. We also look at the cost of SSDs. Finally, we look at a set of parameters to be considered when adding or removing an SKU from the portfolio. Based on this we come up with a framework for adding or removing an SKU from the portfolio. We also highlight the limits of this research paper and point out how these shortcomings can be improved upon in the future.