Glossary
What is SKU Rationalization?
Last updated July 2026
Definition
SKU rationalization is the disciplined review of which items to stock, consolidate, or drop — removing duplicates and dead weight from the catalog.
Multi-branch and post-merger operations accumulate duplicate and overlapping SKUs. Rationalizing them cuts carrying cost and simplifies replenishment.
It pairs naturally with excess reduction: the duplicates you stop stocking are often the dead stock you're clearing.
Part of Excess & obsolete inventory.
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