SKU Management: Optimizing Inventory & Supply Chain

SKU management is vital for stores. Buck General and Lowe's utilize SKU reduction and AI to optimize supply, enhance inventory mix, and improve financial performance. Part of their diversity strategy.

SKU management is an important device for stores, and one a number of have leaned on in the last few years. For instance, SKU decreases have actually been a “big win” for discount store Buck General, chief executive officer Todd Vasos told experts in June. At the time, Vasos said Buck General cut 1,000 SKUs in 2015 and intended to reduce extra this year.

SKU Reduction Benefits

Lowe’s attributed the gains from lower supply to several performance campaigns. Sink claimed the retailer leveraged expert system supply options to optimize need planning, allotment and replenishment while also bolstering its SKU justification initiatives.

“We have actually seen actually excellent sell-through outcomes so far on the supply that we’re leaving there. That truly was the core of the structure of the 50 basis factors that we saw in Q3,” CFO Brandon Sink said.

Lowe’s Supply Optimization

Lowe’s efforts to enhance its supply mix become part of its provider diversity technique. In Might, executives claimed the business is taking a disciplined technique to evaluating its inventory, consisting of private SKUs, item classifications, line structures and assortments.

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