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SKU Rationalization

You have every item your customers want … in some location. You even have 8 or 900 items that no one wants. And naturally that’s in every location. Now you just added 150 new items.

Imagine that scenario but now, add a call from finance, “We’re low on cash. We need to do something about inventory,” while your sales/operations team is in your office imploring you for increased in-stocks and fill-rates. A challenge your organization faces all too often?

CLARITY meets this challenge with comprehensive merchandising and category management application SKU Rationalization. SKU Rationalization analyzes demand and true product availability costs to determine the most profitable item selection across your network. This strategic SaaS application defines the optimal inventory deployment for every item and location. SKU Rationalization determines the profitability of stocking the item to support sales, cross-filling demand from another location, or potentially losing the sale. It then recommends the correct item deployment strategy for every location.

Experience Sustained Benefits

The benefits of SKU Rationalization are proven and long-lasting. Reduced carrying cost, freight cost, obsolescence and lost sales provide benefits you experience forever. With better inventory deployment, you can dramatically improve sales, cash flow and margin.

SKU Rationalization contributes to game-changing results:

One Blue Ridge client, Fortune 500 firm Henry Schein, Inc., relates how in just six months the company:

• Reduced inventory and freight costs by more than $1.3 million
• Supported a 14% sales increase, and
• Sustained a .6% Increase in customer-service level
• Discontinued over 9,500 unprofitable slow movers
• Returned $3 million in overstock
• Liquidated $1.4 million in dead inventory

Keep Costs in Check

The CLARITY SKU Rationalization application allows retailers, wholesalers and suppliers to service customers as completely as possible, while creating a cost-effective deployment strategy in every location.

SKU Rationalization realizes profit through:

• Measuring the impact of current and proposed deployment strategies on important company measures like fill-rate, in-stocks, perfect orders, carrying costs, and more
• Analyzing performance by creating “what-if” scenarios and evaluating the effect of changes in deployment policy prior to execution
• Executing deployment recommendations for every location based on the optimal scenario, company goals or user-defined criteria
• Evaluating the demand of new items early in their life-cycle to determine whether they have continued viability in each location
• Providing business process support through logical process flow, decision support and ease-of-use
• Integrating easily with ERP applications to allow interface of data to and from host systems to execute the change in assortment