Brief analysis

Active portfolio management in the construction supply industry

Increased efficiency through data-based strategies

Efficient and targeted portfolio management is crucial for long-term success, especially in the construction supply industry and for specialised dealers. Companies are increasingly faced with the challenge of optimising the use of their resources while at the same time responding to changing market conditions. Active and continuous portfolio optimisation is essential in this context. In this article, we show you how you can set up, optimise and implement tailored portfolio management with the help of data-based tools such as Power BI.


What is active portfolio management?
Active portfolio management refers to the regular review and adjustment of business areas, products or customer relationships. The aim is to increase profitability and competitiveness by streamlining unprofitable or non-strategic areas. In the construction supply industry in particular, this can be crucial in order to react flexibly to volatile markets and changing customer requirements.

 
Portfolio streamlining: Less is often more
One of the most important measures in the context of active portfolio management is portfolio streamlining. This means regularly analysing both your product portfolio and your customer base and specifically saying ‘no’ if certain areas no longer fit in with your core business or corporate strategy.
 
  1. Streamline customers: Analysing your customers in terms of profitability, strategic importance and growth potential is essential. Are some customers too expensive to support or do they only generate low margins? A decision to part with unprofitable customers can increase your efficiency in the long term.
  2. Clean up articles: The situation is similar with your product portfolio. Products that only generate low contribution margins or are no longer in demand should be critically scrutinised. By eliminating unprofitable items, you create space for innovation and focus on your core competences.
 
Data-based portfolio management with Power BI
A data-driven approach is the key to making well-founded decisions in portfolio management. This is where Power BI comes in, a powerful data analysis platform that helps you visualise and interpret complex data. With Power BI you can:
 
  • Analyse and visualise key figures in real time to make informed decisions
  • Recognise trends and patterns in your portfolio
  • Create customised dashboards that are individually tailored to your business goals
The use of such data-based tools enables you to proactively and continuously adapt your portfolio. This allows you to recognise and react to market changes and new trends at an early stage.
From conception to implementation
Effective portfolio management requires a clear concept that is tailored to the specific requirements of your company. The following steps are crucial:
 
  1. Design: define clear objectives for your portfolio structure and identify core areas to focus on.
  2. Creation: Use tools such as Power BI to create customised analyses and dashboards to support your decision-making processes. Portfolio systems must also be taken into account, e.g. if several customers actually demand unprofitable C-items and would not buy profitable A-items without them.
  3. Implementation: Implement your findings by taking targeted measures to streamline your portfolio and scrutinising both customers and products.
 
Customised portfolio management as a competitive advantage
In a rapidly changing sector such as the construction supply industry, active and data-based portfolio management is essential. The combination of a clear concept, regular portfolio optimisation and the use of modern analysis tools such as Power BI offers you the opportunity to react flexibly to changes while increasing your efficiency and profitability.
 
Regularly adjust your customer and item base, consciously say ‘no’ where necessary and optimise your resources for long-term success. Customised portfolio management gives you the competitive edge you need in a dynamic market environment.
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Your contact person

Christoph Blepp
Christoph BleppManaging Partner

Christoph is a founding partner of S&B Strategy GmbH and is responsible for strategy development and implementation.

He has 17 years of experience as an officer, strategy consultant and managing director, gained at PwC Deals Strategy, smaller consultancies and the German Armed Forces. He studied Political Science and Economics at the University of the German Armed Forces in Munich and completed an MBA at WFI.