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SKU Optimization

CPG firms need to adapt themselves to the rapidly changing preferences of customers (online/offline), to sustain in a highly competitive landscape. It is crucial for them to know the maximum revenue generating SKUs and their placement in the store as well as on digital platforms. Our models are built to help firms optimize their SKUs and improve revenues.

Our Approach

We help clients segment the SKUs that contribute the most to business revenues and profitability. Through our model, we deliver insights on factors that contribute to lost sales at outlets and low performing SKUs, so that necessary business decisions can be taken. We have devised regression modelling techniques to channelize client efforts to improve sales, by deep diving into business processes and extracting hidden insights.
Techniques used

Linear &
Non-Linear Programming

Multivariate Regression

Possible outcomes with SKU Optimization

Optimized Supply-Chain Network

Segmentation of low/high performing SKUs that helps the client remove redundant SKUs in the supply-chain network and push the desired ones that lead to reduced logistics costs & improved service delivery.

Desired SKU placement

Insights regarding the placement of right SKUs in the store and digital platform to increase sales at points of sale that leads to overall increase in revenues

Enhanced customer retention

SKU rationalization strategies and solutions aligned to customer demographics and geography, resulting in brand stickiness and enhanced customer satisfaction levels

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