LOSING THE TAIL
A Story of Simplification and Growth
Over the past few years, I’ve seen a fascinating shift in how many of the brand owners we work with approach their product portfolios. When I founded #Nedcargo, logistics was about moving as many products as efficiently as possible. But times have changed. Today, it’s not just about moving products—it’s about moving the right products.
We’re in the middle of what I call “losing the tail.” Many of our clients, brand owners, are cutting back on the smaller, slower-moving products in their portfolios. These products—the “tail”—are often niche items that don’t contribute much to the bottom line but add huge complexity to their logistics and operations.
It’s a cyclical process. After years of expanding their portfolios, brand owners are now simplifying, focusing on their core fast movers—those top 20% of products that drive 80% of the revenue. And as they cut the tail, we at Nedcargo are right there, implementing this change in their supply chain. Less complexity, fewer SKUs, and a more streamlined approach.
What’s really interesting is that the products that do remain in the tail are becoming super-premium—one-offs, special editions, exclusive products that are highly valued by a select group of consumers. We’re seeing this in every market we serve. At the same time, the bestsellers, the core products, are being lifted—refined, made more luxurious, and more profitable.
For us at Nedcargo, this shift represents an opportunity. As our clients simplify, their logistics become more efficient, their operations run smoother, and their profitability increases. It’s about focusing on what really matters—the products that move quickly and add the most value.
This process is far from over. We’ll see portfolios shrink, grow, and shrink again. But one thing remains clear: the future of logistics lies in simplicity and premiumization. And we’re proud to be part of that journey.
#enjoynedcargo
Diederik Jan Antvelink
Founder, Nedcargo
#Logistics #SupplyChain #Simplification #SKU #ProductPortfolio #PremiumProducts #Nedcargo #LosingTheTail