SKU Rationalization

SKU
rationalization
product
Industry

Retail

For Whom

Category Managers, Product Managers, Inventory Managers

Why You Need This

Rationalize product SKUs to reduce complexity, eliminate underperforming items, and improve overall profitability and inventory efficiency.

How It Works

Statistical analysis identifies slow-moving, low-profit, or redundant SKUs. This involves analyzing sales velocity, profitability, customer demand, and cannibalization effects to determine which SKUs to discontinue or consolidate.

Data Type

Tabular

What You Need

Sales data, profit margins, inventory holding costs, customer demand, and product attributes for each SKU.

What You Get
  • Identification of underperforming or redundant SKUs
  • Recommendations for SKU discontinuation or consolidation
  • Improved profitability and reduced inventory complexity
How To Use It

Streamline your product offerings by removing underperforming SKUs. Optimize inventory management by focusing on higher-demand, more profitable items, and reduce operational complexities associated with managing a vast, inefficient product catalog.

Technique

Statistical Analysis

Business Impact

How We Deliver This

Can Be Extended To