Product Data
What is SKU rationalization?
SKU rationalization is deliberately cutting the assortment to the items that earn their place. It weighs each SKU on contribution margin, velocity, the working capital it consumes, and whether it holds a retail listing, then discontinues the tail. The aim is fewer items each supported properly.
A long tail costs more than its sales suggest. Every extra SKU adds a forecast to maintain, a minimum order to fund, a slot to store, and a row in every item-setup file a retailer demands.
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