Issue №3, 2019



Impact of product portfolio’s changes on company’s results


DOI: 10.34130/2070-4992-2019-3-65-74

Full article 

Afanasyev V. B. — JSC “Syktyvkar Tissue Group”, Syktyvkar, Russia; Head of Production Planning and Procurement Department, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The purpose of this study is to propose an author’s assessment of the impact of changes in the assortment portfolio on the results of the company’s activities, which, unlike other methods, provide an assessment of the synergistic effect of introducing changes to the three subsystems of an industrial enterprise (marketing, production and logistics) according to indicators of economic and non-economic results of the enterprise. The proposed assessment reflects the problem areas of introducing changes in the assortment portfolio and is adapted to the needs of industrial companies and their intercompany relations in the supply chain. The assortment portfolio of each industrial company has its own characteristics, classified by various parameters and subject to change. For classification, the author proposes the following assortment parameters: latitude, marginality, content, scale. Making changes to the assortment portfolio makes sense only when it is associated with a hierarchy of enterprise goals: achieving specified performance indicators, certain performance indicators or total sales and production, restructuring the system in the interest of reducing resource consumption, etc. The compatibility of assortment portfolio management with the business tasks of companies, their organizational structure, culture and personnel determines the viability of the portfolio and the entire organization. Changes in the assortment portfolio affect the entire supply chain. Changes in the assortment portfolio affect the following deliverables of the supply chain: production and storage potential, overall equipment efficiency, return on investment on invested capital, working capital, EBITDA (Earnings before Interest, Taxes, Depreciation, Amortization).

Keywords: assortment portfolio, warehouse inventory unit, constraint theory, change management, supply chain management.


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For citation: Afanasyev V. B. Impact of product portfolio’s changes on company’s results // Corporate governance and innovative economic development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2019. No. 3. Р. 65–74. DOI: 10.34130/2070-4992-2019-3-65-74