Full Life Cycle SKU Rationalization Providing a sustainable process for managing SKUs

Historically, companies have lacked the structured, detail level information necessary to carry out comprehensive SKU Rationalization programs. In general, systems have not been able to scale to provide accurate SKU and customer or channel profitability numbers on more than a one time basis. Organizations have not been able to systematically validate the information on an ongoing basis. Sufficient detail to explain “how” AND “why” specific SKUs were unprofitable or marginal has been hard to come by. Finally, companies could not provide an environment to continuously monitor and assess rationalization decisions cost effectively.

SKU Rationalization is a recurring and important topic for all Consumer Goods Companies. The simple fact is that all SKUs outlive their usefulness; it’s just a matter of when.

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