How can you establish a framework for regularly reviewing and optimizing your SKU portfolio? What are the potential pitfalls of over-rationalizing SKUs?

Nov 28, 2023 ... How SKU Rationalization Helps in Inventory Management ... SKU rationalization in Inventory Management is the process of looking over your current ... Typical results during a line item review show that as much as 25% of a customer's held inventory is comprised of duplicated or “like items”. Apr 13, 2025 ... SKU rationalization is the systematic process of analyzing a company's product portfolio to identify which items are essential and profitable ... Analyze and compare SKU cost and profit performance arms you with the information required to decide which products to change, add, maintain, or retire from ... Detailed step-by-step instruction on how to conduct the analysis: · 1. Collect sales and profitability data per SKU · 2. Calculate SKU profitability. · 3. Apr 26, 2023 ... SKU rationalization is the process of reducing the number of SKUs (stock keeping units) in your inventory. This may sound counterintuitive – won ... Feb 27, 2019 ... SKU rationalization in its simplest form is a thorough spring cleaning of your stock of inventory. Like housekeeping, it should ideally be done ... May 25, 2021 ... The process of SKU rationalization for packaging can be helpful at any time, but it is most helpful in a situation where several packaging SKUs ... Final rationalization is decided by the Demand Transference Index Grid of the SKUs. The demand coming from a product removed from the assortment should be ... Apr 20, 2023 ... Benefits of SKU rationalization · 1. Reduction of inventory holding costs · 2. Reduce human errors · 3. Improve warehouse management process ...