Managing a Rising Tide of SKUs

摘要

SKUs seem to drench today's supply chains with numerical complexity. In anecdotal research about SKU growth, one professional told me, "Almost half of our current SKUs did not exist 36 months ago." This situation points to a few possible scenarios: 1. Nimble, responsive companies are striving to meet ever-changing market opportunities and competitor demands. 2. Businesses creating excessive amounts of new products are chasing an impossible dream of being all things to all people. 3. Companies have ineffective product exit strategies, new product marketing, or product research and development and are not focused enough on lean practices. 4. Organizations use an innovation metric that rewards SKU proliferation as proof of innovation.