Gartner Research

SKUs Are Driving Complexity Into Your Supply Chain and Profitability Out of Your Bottom Line

Published: 10 August 2010

ID: G00205610

Analyst(s): Matthew Davis , Steven Steutermann

Summary

Stock-keeping units are a basic communication method in many supply chain processes, but their proliferation creates unneeded complexity. Quantifying this complexity is the first step to improving SKU rationalization.

Table Of Contents
  • Overview
  • Defining Portfolio Complexity
    • Managing Parts and Configurations
    • Managing Completed Products
  • Drivers of SKU Complexity
    • The "Everything for Everyone" Mentality
    • Managing Multiple Suppliers, Retailers and Partners
    • Blinded by functional silos
  • The Costs of SKU Proliferation
    • Creating the Cost Model and Business Case
  • Take-Aways and Actions

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