Product Rationalization Within the S&OP Process to Adapt to the Covid-19 Environment

In recent years SKU proliferation has been a key theme for consumer goods companiesas they aim to serve an increasingly diverse population with new, targeted products across brick-and-mortar, direct toconsumer, and eCommerce channels. As Covid-19 hit, along with its economic implications, the risk of SKU proliferation hasbeen laid bare. In an attempt to rid themselves of low margin, under-performing products, many consumer goods companiesare engaging in SKU rationalization. Here I explore the reasons for SKU bloat in recent years and present a framework foridentifying your most valuable items using a new technique that focuses on the economic value of each SKU, allowing you toknow which items to keep and which ...