SKU Rationalization

SKU rationalization is a strategic process that companies use to evaluate and optimize their product offerings. It involves analyzing the various Stock Keeping Units (SKUs)—which are individual product variations like size, color, or style—to identify which products are profitable and align with business goals. Less profitable or redundant SKUs may be discontinued to reduce costs, streamline inventory, and improve overall efficiency. The goal is to focus on the best-performing products that meet customer demand, enhance operational effectiveness, and support long-term growth.