How to Handle Increasing SKU Proliferation

How to Handle Increasing SKU Proliferation

Compared to ten years ago, today’s warehouse operations are starkly different. Not only did 5,000 new warehouses appear in a span of 5 years, but e-commerce sales have skyrocketed over 300% way before the global health crisis. Thanks to globalization and the internet, the high demand for specific products and fast order fulfillment has revolutionized operations, leading to one of the biggest business trends helping and hindering operations: SKU proliferation. 

As companies adapt to cater to customer preferences, they create new product varieties, giving way to new SKU numbers to identify different types of the same kind of product. This is a natural progression for any growing business, yet without crucial visibility, SKU proliferation can lead to:

  • Increased carrying costs as you’ll need more shelf space and labor to accommodate more products
  • Increased manufacturing/production costs for slow-moving inventory
  • Added order cycle times since workers take more time to compile orders
  • Missed predictive analytics since collected data does not apply to larger segments of your operations

However, when done correctly, SKU proliferation sharpens your competitive advantage by allowing your business to fulfill a customer’s immediate and secondary needs. Therefore, Avalon Integration outlines three ways your distribution plan can leverage intelligent visibility solutions to best manage varying SKUs.

Bringing Insight to Where it’s Needed Most

When modernizing inventory management, Avalon suggests the following areas to start:

Analyze purchase patterns in conjunction with customer interactions

Zebra L10 Tablet to Analyze Purchase Patterns

Zebra’s L10 tablets provide ample screen space, processing power, and integrated scanning capabilities

Obviously, one of the most common causes of SKU proliferation is customer demand. For example, a shoe company selling back shoes may notice the sudden popularity of red shoes and decide to sell them as well. While this may be competitively smart, one must not forget to continue monitoring current stock performance. In our shoe example, that would mean managers would still need to accurately track the number of black shoes in stock, how often they sell, and where they’re located in addition to trends in demand.

To properly analyze stock performance without increasing cycle count times, Avalon recommends streamlining data capture and mobile computing to eliminate data entry. Mobile devices such as Zebra’s L10 tablets provide ample screen space, processing power, and integrated scanning capabilities to empower workers to manage data on the go, creating an undisrupted inventory management system.

Connect workers to real-time stock updates

MC3390R RFID Real-Time Stock Updates

Integrate real-time visibility with RFID tracking solutions

Customer preferences can change within a day, sometimes in a matter of minutes. Moreover, research shows that customers are more likely to abandon carts if they’re unable to fulfill 100% of their needs in one place. That means every decision your workforce takes matters.  To avoid wasting labor efforts, integrate real-time visibility with RFID tracking solutions, such as Zebra MotionWorks, to manage multiple inventory identifiers all once. Inventory counts and location can then be shared with your workforce via their mobile device to accelerate picking by guiding them to the correct location faster.

Protect communication channels across the whole supply chain

Zebra TC77 Touch Computer Communication

Zebra’s TC77 touch-computer for high-speed and long-range connectivity

Disruptive communication channels such as Blockchain Technology are already redefining the way supply chains communicate by allowing enterprises to monitor inventory before it reaches the receiving dock. That means connectivity has now become a driving factor in enhancing competitiveness since it also allows customers to track their orders, a benefit sought by 97% of online shoppers. While there are many ways to establish communication channels between teams, Avalon continues to prioritize streamlined productivity and flexibility by recommending Zebra’s TC77 touch-computer for high-speed and long-range connectivity that keeps field teams and warehouses connected while also providing mobile computing and data capture capabilities.

As a Zebra Premier Solutions’ Partner, Avalon Integration makes sure to connect you with durable enterprise-ready solutions. Contact us today to discover new ways you can get a better handle on SKU proliferation with solutions tailored to your workflow.

, , , , , , , , , , ,
Previous Post
Avalon found the easiest ways to enhance your inventory system (the results are simpler than you think)
Next Post
3 Zebra Products Designed for Augmented Visibility
Menu