Issues
As with many businesses, the client realised that, as it had grown, some of the products in its portfolio were adding complexity rather than profit. In addition,
acquisition of new businesses and the consolidation of its distribution operation made it essential to clear any poorly performing SKUs from its range. Consequently there was a need to establish criteria by which SKUs could by categorised with a view to identifying those which should be recommended for delisting.
Hansaya Approach
The Hansaya team worked hand-in-hand with the Supply Chain and Commercial Teams to agree suitable criteria and identify the SKUs which failed them. Areas considered included profitability, forecast activity, items where the stock replenishment parameters were likely to out of life write-off and the size and profitability of typical transactions.
Steps Taken
Initial Data Collection
“408 fewer items to deal with, saving outside storage costs and eliminating inefficiencies in the warehousing and distribution operations”
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