
10 signs you have too many SKUs
- You have product managers for “problem child” SKUs
- To avoid stock-outs, you carry a lot of inventory
- Fact: 80% of sales come from just 20% of SKUs
- You have not yet calculated your carrying cost per SKU
- You struggle to measure how new SKUs cannibalize sales
- You did not rationalize your SKUs after your last merger (and instead kept all SKUs of both companies)
- At your company, an SKU isn’t the most granular level of product identification (e.g. 1 SKU has multiple sizes)
- SKU portfolio decisions at your company are driven by minimizing risk rather than maximizing sales & profit
- The best-selling SKUs in one territory are not tested in other territories
- You have separate SKUs for each channel that your products are sold through
At Neal Analytics, we help Retail & Consumer Goods customers identify highly profitable SKUs so they can be distributed further to maximize sales. Our advanced modeling techniques have been proven to increase sales by as much as 8%!