Transportation & Logistics International - Summer 2015 - 12

Inventory Management

THE

Summer 2015

front

// Excess SKUs can distract sales organizations
as they push distribution and can prevent the
effective launch of new products.

THE PROBLEM
WITH PROLIFERATION
A mature approach to SKU rationalization can help your company's bottom line.
- David F. Giannetto
Walk into your warehouse and
imagine more than 40 percent of the
SKUs within it contributing less than
5 percent to your organization's overall
revenue - and even less to your margin.
Unfortunately, this is true for a majority
of companies and probably applies to
your own organization. Combine this
with the number of SKUs in the average

12

TLIMAGAZINE.COM SUMMER 2015

distribution company's product portfolio tripling over the past 10 years and the
problem has a far bigger impact than the
average executive realizes.
Some impacts are obvious: warehouse
and inventory space, handling costs and
their usage of the most valuable real
estate in the entire supply chain, shelf
space. However, it is the less obvious

impacts of excess SKUs that do the most
damage: they diffuse focus across a larger number of products, eat up limited
promotion dollars, distract sales organizations as they push distribution, use
up the creative effort of marketing, sign
shops and merchandisers and prevent
the effective launch of new products.
The solution is a better approach to


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Table of Contents for the Digital Edition of Transportation & Logistics International - Summer 2015

Contents
Transportation & Logistics International - Summer 2015 - Cover1
Transportation & Logistics International - Summer 2015 - Cover2
Transportation & Logistics International - Summer 2015 - 1
Transportation & Logistics International - Summer 2015 - 2
Transportation & Logistics International - Summer 2015 - Contents
Transportation & Logistics International - Summer 2015 - 4
Transportation & Logistics International - Summer 2015 - 5
Transportation & Logistics International - Summer 2015 - 6
Transportation & Logistics International - Summer 2015 - 7
Transportation & Logistics International - Summer 2015 - 8
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Transportation & Logistics International - Summer 2015 - 12
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Transportation & Logistics International - Summer 2015 - 49
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Transportation & Logistics International - Summer 2015 - 53
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Transportation & Logistics International - Summer 2015 - 56
Transportation & Logistics International - Summer 2015 - 57
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Transportation & Logistics International - Summer 2015 - 60
Transportation & Logistics International - Summer 2015 - 61
Transportation & Logistics International - Summer 2015 - 62
Transportation & Logistics International - Summer 2015 - 63
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Transportation & Logistics International - Summer 2015 - 87
Transportation & Logistics International - Summer 2015 - 88
Transportation & Logistics International - Summer 2015 - Cover3
Transportation & Logistics International - Summer 2015 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016fall
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2016winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall_v2
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2012fall
http://www.nxtbookMEDIA.com