Supply Chain Optimization

A Remarkable Achievement: Ferrara Candy's Success in Dramatically Reducing Their SKU Count

Congratulations to Ferrara Candy!

They have succeeded where many others have failed, they have successfully reduced their SKU count by about a third. Josh Lipman and Keba Mbaye presented at the #NextXGen conference. This is how they did it...
 Ferrara Candy
Some interesting points:
  • The CEO did his own research — he spent 20 hours in Walmart watching Candy Corn buyers. He noticed they bought only the original flavor and not the add-on flavors. 
  • They moved from a focus on the customer (Grocery store) to  focus on the consumer. This was important (given the above) but it was also important to keep the store facings. The original justification for the additional shelf facing were the add-on flavors.  The challenge was to keep the facings—but populate them with just the original flavor.  
  • CEO support and discipline (One SKU in-One SKU Out). 
  • Monthly meetings with senior management who made decisions when there was a deadlock between Supply Chain and Sales.
  • Supply chain helped marketing understand the manufacturing process so they could consider factors not that were not obvious in the cost of goods such as when packaging small packs slowed the production line.
This company is to be congratulated!
—Tom Moore, CEO T|WO
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