SKU rationalisation

What is SKU Rationalisation in Inventory Management?

SKU rationalisation is a strategic inventory management process that involves reducing the number of stock keeping units (SKUs) in an organisation's inventory. This targeted reduction aims to streamline operations, reduce costs, and enhance overall efficiency.

Common Challenges:

• Overwhelming Inventory Complexity: Managing a large number of SKUs can lead to complexity in inventory control and increased operational challenges.
• Escalating Storage and Handling Costs: Holding numerous SKUs often requires more warehouse space and additional resources for storage and handling.
• Reduced Employee Productivity: Excessive SKUs can hinder employee efficiency as they search for and handle a wide variety of items.
• Inventory Tracking Difficulties: Keeping track of a multitude of SKUs can pose difficulties in monitoring inventory levels, leading to inefficiencies.

How can Libra Europe help?

• SKU Assessment and Classification: Libra Europe evaluates your existing SKUs and categorises them based on various factors, including demand and profitability.
• Identify Slow-Moving or Redundant SKUs: We identify SKUs that may no longer serve a significant purpose or have limited demand.
• Develop Rationalisation Strategies: Our experts create strategies for reducing SKUs while minimising disruptions to your operations.
• Optimise Inventory Levels: By eliminating unnecessary SKUs, we help you optimise inventory levels and reduce associated costs.
• Streamline Operations: SKU rationalisation enhances operational efficiency by simplifying inventory management.

Benefits to Expect:

• Streamlined Inventory Control: A reduced number of SKUs makes inventory management more straightforward and efficient.
• Cost Reduction: Lower storage and handling costs result from a leaner SKU portfolio.
• Enhanced Employee Productivity: Employees can work more efficiently when dealing with a simplified range of SKUs.
• Improved Inventory Visibility: Tracking inventory becomes more manageable, reducing the risk of overstocking or stockouts.
• Increased Operational Efficiency: The streamlining of operations contributes to overall efficiency improvements.