SKU Rationalization
SKU
rationalization
product
Industry
Retail
For Whom
Merchandisers, Inventory Managers
Why You Need This
Rationalize product SKUs to reduce complexity and improve profitability.
How It Works
Pareto (80/20) analysis and profitability mapping of the entire catalog.
Data Type
Tabular
What You Need
Sales volume, margin, and storage cost per SKU.
What You Get
- SKU 'keep or cut' list
- Segment definitions: Core SKUs, Niche, Drains
- Inventory space savings estimate
How To Use It
Discontinue low-margin, slow-moving items that take up valuable space.
Technique
Statistical Analysis
Business Impact
Improved inventory turnover, higher overall margin (track SKU count and margin).
How We Deliver This
Quarterly assortment review.
Can Be Extended To
New product slotting analysis.