What is SKU Rationalization?
SKU rationalization is the process by which companies consolidate duplicate or similar SKUs or specifications across their product lines, enabling benefits such as cost savings and operational efficiencies.
While the term isn’t new, the impact of SKU proliferation on supply chains has started to take a toll as business leaders look for new ways to drive efficiencies and cost optimizations. As a result, many are turning to SKU rationalization but aren’t sure where to start.
How will your organization's supply chain simplify this year?
27% of respondents from Supply Chain Dive's recent survey said they will consolidate SKUs
How were you managing specifications before Specright?
Respondents said before Specright they relied on pen & paper to manage specs 17% of the time.
SKU Rationalization Starts with Specifications
Many executives leading the charge on SKU rationalization initiatives typically assemble teams and spreadsheets for a months-long numbers crunching exercise. But once these manual SKU rationalizations are complete, the results are temporary as new products and specifications and constantly being created and updated. To create a scalable, ongoing approach to SKU rationalization, organizations must deal with the root cause of the problem: a lack of specification management.
To learn more about how to implement a successful and ongoing SKU rationalization program, download our Executive Briefing.
SKU Rationalization with Specright's Like Item Finder
Specright’s Like Item Finder enables companies to easily consolidate any type of specification – the example here shows opportunities to consolidate flexible packaging.
Ongoing SKU Rationalization Prevention
Specright’s Similar Spec alert prevents duplicate specifications from being created in the first place.
eBook: Why Retailers Are Starting to Pay Attention to Specifications
Every industry has been transformed by technology, but it’s safe to say that retailers have perhaps been the most disrupted. With the hyper growth of eCommerce, direct-to-consumer brands, and Amazon, retailers found the need to reevaluate their approach to go-to-market and staying competitive.