Materials
SKU Optimization
Analyzing SKUs to reduce costs and improve inventory efficiency.
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Updated 2025-10-01
Definition
SKU optimization identifies redundant, slow-moving, or low-value SKUs to improve space utilization and profitability.
Overview
Overview
Optimizing SKUs involves balancing product variety with inventory efficiency, considering sales volume, profitability, and warehouse capacity.
Benefits
- Reduced carrying costs
- Improved warehouse space usage
- Increased inventory turnover
Example
A retailer removes low-selling SKUs and consolidates similar items to optimize warehouse operations.
Tags
#SKU Optimization#Inventory Management#Materials#Warehouse Efficiency#Cost Reduction
Related Terms
SKU Management
SKU Rationalization
Inventory Turnover
