Managing SKU Proliferation in the Beverage Industry

摘要

Q: What is SKU proliferation, and what drives it? A: Competition is driving beverage makers to expand their portfolios to provide a wider array of product, flavor, package, and beverage choices. All these choices generate new stockkeeping units (SKUs). SKU proliferation, in turn, drives the need for smarter use of labor, distribution networks, warehousing space, and transportation resources. Q: What are some new beverage product and SKU categories? A: New product categories are a huge contributor to SKU proliferation. Coconut water is a case in point: this emerging segment grew nearly 30 percent in 2013. Existing segments such as alcoholic beverages are also expanding. No longer satisfied with a glass bottle option, consumers demand more portable and eco-friendly packages. Today, wine and spirits come in standard and mini bottles, boxes, cans, and pouches, all of which add to packaging, distribution, and transportation complexity. Given the growing diversity of spirit flavors and boutique wines, some wine and spirits distributors handle as many as 15,000 SKUs.