SKUoverload
SKUoverload is a term used in inventory management and retail to describe a situation in which a company carries more stock-keeping units (SKUs) than necessary to satisfy demand, leading to operational inefficiencies and increased costs. It is a common challenge in fast-moving consumer goods, multichannel retail, and e-commerce where assortment expansion, promotions, private labels, and supplier fragmentation create proliferation of SKUs.
Causes include a desire to offer broad choice, frequent promotions, fragmented data governance, acquisitions that add
Impacts of SKU overload include higher carrying costs, slower replenishment cycles, more stockouts or obsolete inventory,
Common indicators are a high SKU count relative to sales, low sell-through of a large share of
Mitigation strategies focus on SKU rationalization and data-driven assortment planning. Approaches include portfolio analysis (ABC analysis),
Benefits of addressing SKU overload include lower carrying costs, improved forecast accuracy, faster replenishment, more effective