ANAPLAN SKU RATIONALIZATION APPLICATION

WHY SKU RATIONALIZATION?

Every retail or CPG company faces the recurring need to eliminate underperforming SKUs in an effort to increase brand profitability. By regularly identifying which to retain, which to improve, and which to discontinue, SKU rationalization can lead to significant improvements in product productivity, operational efficiency, and customer satisfaction.

THE CHALLENGES

Error-prone, time-intensive Excel models with disjointed spreadsheets, no single versions of truth, and limited collaboration.
Large SKU portfolios with unknown numbers of low-margin products that are incurring significant costs.
Managing a broad range of SKUs which drives inefficiencies in the supply chain.
Overwhelmed customers who are struggling with decision fatigue.

WHAT IS THE ANAPLAN SKU RATIONALIZATION APPLICATION?

This is a process automation application that quickly identifies low-performing SKUs across an entire brand portfolio. Developed by Columbus Consulting with the industry-leading Anaplan Connected Planning technology, this seamlessly-integrated tool allows retail and CPG firms to target key performance indicators that drive productivity and profitability while providing dynamic summarization at any level of a product hierarchy. It offers customizable workflow that ensures input and approval from main stakeholders, which remains auditable throughout the planning cycle. In addition, the application provides a unified perspective and executive reporting to initiate immediate decisions and maximize returns with every execution.

Our application can support additional features along with SKU rationalization, including:

Cost savings and expense reallocation analysis

Attribute grouping and similarity comparison

Gross Margin Return on Inventory (GMROI)

THE BENEFITS OF THE ANAPLAN SKU RATIONALIZATION
APPLICATION

Inventory cost reduction
Improved supply chain efficiency
Portfolio alignment with strategic goals
Increased productivity & inventory turns
Protect brand integrity while improving KPIs
Enhanced focus on high-performing products
Increased sales, margin and cash flow
Better customer satisfaction
Data-driven decision making
Improved financial performance
Seamless integration with external software

WHAT RETAILERS ARE SAYING ABOUT SKU RATIONALIZATION

American multinational, multi-brand clothing company

“An inventory management SKU rationalization initiative was undertaken as a measurement of profitability by product and division, which resulted in a margin improvement of 0.5% from a reduction of costs related to operations and supply chain costs, and an improvement of 3% in sales through a more customer-centric product portfolio.”

– American multinational, multi-brand clothing company

American kitchenware and home furnishings retailer

“By streamlining our Outdoor Grilling assortment, we delivered a 39% sales increase over the previous season and reduced the return rate by 20%.”

– American kitchenware and home furnishings retailer

National retailer of specialized confections and gifts

“Developing a comprehensive assortment strategy inclusive of a SKU rationalization allowed us to improve translation value by 55%, grow gross margin by 1.8%, and deliver positive EBITDA for the first time in the company’s history.”

-National retailer of specialized confections and gifts

Global outlet retailer providing products to international travelers tax-free

“SKU rationalization was a key part of our luxury clothing brand transformation within our overall fashion portfolio which resulted in 20% sales growth and a 5% gross margin improvement.”

– Global outlet retailer providing products to international travelers tax-free

American multinational, multi-brand clothing company

“An inventory management SKU rationalization company initiative was undertaken as a measurement of profitability by product and division, which resulted in a margin improvement of 0.5 % from a reduction of costs related to operations and supply chain costs, and an improvement of 3%, in sales through a more customer-centric product portfolio.”

– American multinational, multi-brand clothing company

Global multi-brand fashion/apparel retailer

“Reduced Global Portfolio by 65%; created 70/30 congruence for global markets (70% SKUs that are globally assorted vs 30% that are unique to drive market and increase market share) which reduced global inventory by 65% and increased profitability by 12% ($3M) through driving depth and increasing brand alignment.”

– Global multi-brand fashion/apparel retailer

ARE YOU EXPERIENCING ANY OF THESE CHALLENGES?

Inventory complexity
Profitability concerns
Operational challenges
Customer confusion/too many choices
Technology limitations (still using Excel)

IT’S TIME TO SCHEDULE YOUR SKU RATIONALIZATION REVIEW

Columbus Consulting can help your company master the critical process of SKU rationalization. Follow the link below to learn how our configurable Anaplan SKU Rationalization Application will transform your business.

ABOUT COLUMBUS CONSULTING

Columbus Consulting is a leading global consulting services firm and Anaplan’s only services partner focused exclusively on providing recognized business process expertise and proven technology experience to the Retail/CPG industry.

ABOUT ANAPLAN

Anaplan is a leading provider of enterprise cloud software, empowering organizations across industries to see, plan and lead better business outcomes. Our Connected Planning platform enables leaders to align their strategic objectives and resources, make bolder decisions and drive faster results.