In the race to meet ever-evolving customer expectations, businesses are expanding their product portfolios like never before — launching new variants, personalized offerings, and a wide range of pack sizes to cater to niche needs. While this strategy boosts market reach and brand appeal, it brings along a silent yet costly challenge: SKU proliferation.
SKU proliferation occurs when companies add more Stock Keeping Units (SKUs) to their catalog without proportionate planning, performance evaluation, or operational alignment. Initially, this expansion feels like growth — more options, more customers, more shelf space. But soon, the cracks start to appear:
📦 Inventory swells with slow-moving and redundant items
📉 Forecast accuracy plummets due to data dilution
🧩 Planners struggle with availability vs. cost trade-offs
🕒 Excess working capital is locked in non-performing SKUs
⚠️ Service levels suffer as resources are stretched too thin
In short: more SKUs ≠ more value. In fact, it often leads to less efficiency and more chaos.
It affects every part of your business:
Sales wastes time pushing non-performing items
Marketing loses focus on core hero products
Finance faces bloated working capital
Operations deals with poor turnover and wastage
Customer Experience declines with stockouts on high-demand items
If left unmanaged, SKU proliferation creates a drag on profitability and responsiveness.
At Translytics, we equip organizations with SKU-level intelligence — turning product complexity into strategic clarity. Our platform helps businesses:
Analyze Sales Velocity & Contribution
Know which SKUs are pulling their weight and which ones are dead weight. Understand performance across channels, geographies, and time periods.
Identify Low-Value SKUs
Pinpoint underperformers that drain resources without adding value. Use data to support discontinuation or bundling decisions.
Classify Using ABC/XYZ Methods
Segment SKUs by volume, frequency, and predictability to tailor stocking and planning strategies. Focus more on 'A' and 'X' items that drive value.
Rationalize Based on Performance
Take informed action — consolidate similar SKUs, phase out slow movers, and double down on top performers. Align your portfolio with business goals, not just market noise.
When SKU proliferation is managed well, the results are powerful:
📉 Reduced Inventory Risks: Less capital locked in dead stock
📈 Improved Forecast Accuracy: Sharper signals from cleaner data
🚀 Streamlined Planning: Focused effort on what truly matters
🤝 Better Service Levels: Prioritized availability for high-impact items
💡 Informed Product Strategy: Innovation with intent, not impulse
In an era where personalization and choice are key, SKU expansion is inevitable. But uncontrolled SKU growth is not scalable. Managing proliferation with the right tools, analytics, and frameworks is what separates thriving businesses from those drowning in their own complexity.
With Translytics, you gain SKU-level clarity to make smarter, faster, and more profitable decisions.
Less clutter. More impact. That's the power of intelligent SKU management.