The nomenclature of products is, in simple words, a list of names (types) of products created in various national economic sectors. Its development is of particular practical importance. Let us further consider what the list of products may be.
Goals
The product range is one of the most important categories used in production. A list of types (names) of products is being developed:
- For planning the structure, pace, proportions of development of national economic sectors.
- Forecasting the volume of manufactured goods in value, physical terms.
- Formation of material balances.
- Making plans for the distribution of goods.
- Establishing relationships and drafting contracts between companies that manufacture products and their consumers.
- Definitions of production capacity.
Features
In practice, an expanded nomenclature is used. Example : "Cars - 10 thousand units." In this case, the specific number of trucks, cars is not indicated. An enlarged product range is a list approved in the framework of long-term plans. It is specified in current programs, depending on the structural economic links. At the state level, an enlarged nomenclature of the most important types of products is being formed. When developing programs within the framework of departmental and ministerial interaction, it is specified depending on the economic segment. Products manufactured by the enterprise must satisfy the demand of customers. In this regard, the formation of lists takes into account the needs of potential customers. To do this, an analysis of the market situation is carried out, the structure of the assortment of competitors is studied. Based on the results obtained, our own production is being improved.
Assortment Structure
In the activities of production associations, extended lists of goods of a certain name with special technical and economic characteristics are used. The latter, in particular, include power, productivity, dimensions, quality, etc. The assortment is characterized by depth, breadth, level of renewal, and completeness. The latter is determined by the ratio of the actual number of types of products to the volume specified in the specification or price list. Assortment depth - the number of positions for each type of product. The update level shows the share of new products in the total volume put up for sale. The assortment structure is characterized by the specific gravity of groups, subgroups, types, subtypes of goods in the total turnover.
The specifics of the formation
The product range is the entire range of manufactured products. It includes various types of goods. They are divided into types (assortment groups) depending on functional features, cost, quality. In each of them, positions (brands, varieties) are distinguished. They form the lowest level of classification. Before compiling the assortment, the company develops a concept. It provides directional construction of the proposal. The basis is consumer demand from specific market segments. At the same time, the assortment concept should ensure the most efficient use by the firm of its raw materials, financial, technological and other resources to minimize production costs.
Control
Management involves coordinating interrelated areas of activity: design and scientific, technical, research, organizational, service, advertising, etc. The management problem is the difficulty of combining elements to achieve the main goal - optimizing the nomenclature in accordance with the market objectives of the enterprise. If it is not resolved, then the list of manufactured goods will include products that are more convenient for company divisions than for customers. Assortment policy is considered one of the key elements of the company's strategy. Issues related to narrowing / expanding the list of manufactured / sold products may have different solutions. This is influenced by a whole range of factors. Among them are industry specifics, company size, product group specifics, etc.
Planning
The art of properly compiling an assortment lies in the ability to realize existing or potential material and technical capabilities in goods that, while generating profit for the manufacturer, have a certain consumer value that satisfies the customer. Simply put, a manufacturer is not just creating products. It also forms a customer base, satisfies the specific interests of customers. Planning is an ongoing process. It lasts throughout the product life cycle. A company cannot endlessly supply the same products to the market.
Methods
A prerequisite for the survival of the enterprise on the market is constant innovation in the production of products. The main types of strategies include product development:
- Fundamentally different from competitors.
- With improved features.
- A new look with the use of previously released products due to their modernization, equipping with additional devices and options.
Another way of updating is to reduce the output or withdraw from production of goods that are not in demand.