Products: Understanding Bundles; Assemblies; Packages & Customization Video Lecture | Using Brightpearl: Product Management - Data & Analytics

in this video we're going to look at
some product management concepts we're
going to look at bundles packages
assemblies disassemblies and product
customization so this video just
explains the concepts there are separate
dedicated videos that show you how to
actually implement these different
structures in Brightpearl first of all
let's take bundles and what we're doing
here is actually just combining the
products when the product is sold and
the important thing here is that other
customers can buy the component parts
all the way up until the point that the
bundle is actually sold and when the
bundle is sold the inventory of the
components is reserved so here for
example we've got a bundle which is a
tennis racket plus balls and when the
customer buys a tennis racket with balls
the inventory of the racket and the
balls are actually updated separately
and bundles are not actually stopped
track products they don't have their own
inventory level the available quantity
of a bundle is purely based on the
infantry level of the component parts
other examples of bundles include one we
have here the canoeing family pack and
this is to show that you can have a
number of different quantities of
components so we've got the canoe and
for lifejackets two paddles and a
waterproof bag we've also got the
concept of buy-one-get-one-free which
can be a bundle so here we're pricing a
bundle of two of component B simply at
the price of one of component B
effectively that's buy one get one free
and then cases of wine so this is an
example whereby you're actually selling
a bundle of six bottles but because the
bottles can still be sold separately its
bundle well the next type of product we
have is an assembly and sometimes this
is called a bill of materials or
manufacturing process but the important
difference between bundles and
assemblies is that with an assembly
items can no longer be sold separately
once you've built them and what we're
doing here is actually manufacturing a
finished product from different
component parts in this particular
example we've got a wheel where we've
got 32 spokes a rim and a hub and when
the wheel is built people can't buy the
hub spokes or rim separately anymore
if they did you'd have to disassemble
this product unlike bundles assemblies
have their own inventory level
they're separate physical goods that
once they're built don't have any other
dependencies on other products other
examples of assemblies include say a
projector with a cable but this is only
when the cable is actually built into
the box or sealed into the box and if
you actually combine the cable with the
projector at the point of sale by you
when someone checks out online or when
you pack it then it's a bundle it's only
an assembly when you're actually sealing
it together in the box so that people
can't buy the cable anymore another
typical example of an assembly is a
necklace and the chain and pendant here
are sold together but it's not an
assembly if you actually build the
necklace to order so dis assemblies are
pretty much the same as an assembly but
it's the other way around
typically when you're buying in bulk and
selling in smaller quantities and you'd
use disassemblies when you want to track
stock of both the bigger bulk item and
also the smaller items so as an example
we're buying pallets of two hundred and
fifty jars which are then sold as boxes
of sixteen so you disassemble these
you'd reduce the quantity of the pallet
and increase the quantity of the
components or increase the quantity of
the boxes and then for the electronic
components you'd say buy packs of a
thousand and spend time breaking them
down into smaller packs of ten maybe
adding some branding or some packaging
now custom packages is a different
concept again and this is where a
customer is given a different choice of
items to custom build into a finished
product and generally these items are
combined at the point of sale so you're
not pre building packages they're custom
and they're different for every single
customer so typically a retailer will
define a number of different products
that can be put into this package and
then when somebody buys one of each of
these they get a 10% or a 20% discount
the product itself usually has its own
SKU - which allows you to track sales
and do some reporting based on which
packages support versus which products
are sold when they're not part of a
package a typical example of a custom
package builder is a computer where a
customer can choose a motherboard choose
a processor choose a hard drive choose a
case and then once all of these products
are combined there's a fixed price of
$400 and here we've got option D and
option
F that actually cost a little bit more
if you've chosen them we're including
custom packages in this video because
the inventory management of the package
is essential when somebody buys this
package the stock of the different
components need to be updated or
allocated properly so when you connect
your e-commerce channel to Brightpearl
and e-commerce is typically where custom
packages occur you need to make sure
that it's done properly here's a typical
example of a custom package builder
online where the user has to choose a
snowboard choose their bindings choose
boots choose bag and various optional
accessories when the product is bought
the right items need to be added to the
sales order in Brightpearl and the
inventory needs to be updated properly
and the final concept we're going to
introduce in this video is customization
and this is where you have a base SKU
that you do track stock of and then you
modify it on a per order basis so
perhaps someone would send you an order
for a pen with an engraving or maybe
they're uploading a file that they want
to print on a garment maybe a t-shirt or
hoodie or on a canvas or maybe a photo
they're uploading another example of
customization is the cutting of a key to
fit a lock now each of these
customizations don't need their own SKU
because the products don't need to be
stock tracked it's only the base item
that stock tracked unless you're
actually building some of these or
printing some of these or pre cutting
these before the sale is made so maybe
you're pre-empting a spike in sales and
you want to build up a buffer of stock
in that situation you would need a
separate SKU for the customized product
and a different skew for each
customization so that's introduced two
different concepts and the terminology
each of these is covered in their own
video which shows you how to implement
them in Brightpearl