The width and depth of the assortment range - and not to forget - what SKUs to hold at which locations, have always been fundamental considerations for our customers.

SKU Rationalization analyzes demand and real costs tied to product availability to determine what mix of items is the most profitable across the company's locations. This strategic SaaS solution defines the optimal mix of items per location in your entire network.

SKU Rationalization determines the profitability tied to different roles and strategies weighted against supply from other locations against potential lost sales. Thereafter SKU Rationalization on a running basis suggests strategies for phasing in and out at each location.

Is assortment analysis and - management that profitable, really?

Yes, as a matter of fact, it is. Implementation of professional assortment management has repeatedly shown to deliver solid and sustainable results with respect to reduced inventory holding costs, freight costs, obsolesence and lost sales. With a professional assortment management solution like SKU Rationalization you can create breakthroughs in sales, cash flow and margins.

Here is an example: The Fortune 500 company Henry Schein, Inc in 6 months achieved the following results:
  • Reduced inventory and freight costs more than 3,1 million USD.
    Fortune 500 company
  • Sales increased by 14%
  • Already extremely high customer service levels increased by 0,6%
  • More than 9500 non-profitable items were deleted
  • Overstock worth more than 3 million USD was returned to suppliers
  • Inventory not moving and worth more than 1,4 million USD was written off