Cliff McCrary Dallas | Managing Portfolio Complexity in the Food Industry
Cliff McCrary Dallas
In the food and ingredient business, product lines grow fast. New formulations, custom specs, and customer-specific blends often create sprawling portfolios. Cliff McCrary Dallas has worked with companies managing hundreds of SKUs, many of which drain resources without adding strategic value.
Portfolio complexity is not inherently bad. Customization can drive sales. But when not managed carefully, it erodes margin, complicates forecasting, and overwhelms operations. The key is clarity—knowing which products create value and which don’t.
Cliff McCrary Dallas encourages clients to map their portfolios using both revenue and cost data. High-revenue SKUs aren’t always profitable. Some require unique raw materials, slow production lines, or complex documentation. Others tie up working capital in low-turn inventory.
A common trap is creating SKUs for every customer request. While this feels responsive, it often fragments production and increases supply chain risk. Cliff recommends clear criteria for when a new SKU should be added—and when it’s time to sunset old ones.
Another challenge is internal visibility. Sales, marketing, operations, and finance may all have different views of the product portfolio. When these aren’t aligned, planning breaks down. Inventory builds where it’s not needed, and sales pushes products that strain production.
Cliff McCrary Dallas supports companies through portfolio reviews that examine demand variability, margin by SKU, and manufacturing efficiency. The goal isn’t to shrink the portfolio blindly but to reshape it around what the business does best.
Communication with customers is also critical. Retiring a product or shifting specifications must be handled with care. But Cliff argues that many customers respect clarity. If a product no longer makes sense, offering a close substitute often strengthens the relationship.
Technology can help track SKU-level performance, but insight comes from interpretation. Cliff advises companies to look for trends in order frequency, return rates, and production disruptions tied to specific products.
A healthy portfolio has a clear backbone—core products that drive most of the business—supported by flexible layers that allow for customization where it’s profitable. When too much of the portfolio sits in the “one-off” category, complexity grows faster than margin.
Another area of focus is packaging and documentation. Slight changes in labeling or certs can create major compliance and operational burdens. Cliff McCrary Dallas encourages teams to standardize wherever possible, reducing the need for constant customization.
Ultimately, portfolio discipline supports growth. It frees up resources, simplifies forecasting, and reduces the risk of customer disappointment. Businesses that master this balance can offer variety without sacrificing efficiency.
For companies in the ingredient sector, portfolio complexity is unavoidable. But unmanaged complexity is optional. Cliff McCrary Dallas helps firms navigate this challenge with clarity, data, and cross-functional planning that drives both stability and growth.