.jpg)
.jpg)
SKU Proliferation: Is It Reducing Your Storage Efficiency and
Increasing Your Costs?
In a competitive market, offering a wide variety of products feels like a must-do to meet diverse customer demands. However, there’s a hidden challenge many businesses face: SKU proliferation and its impact on storage efficiency.
What is SKU Proliferation?
SKU proliferation is the rapid expansion of product offerings—new sizes, colours, packaging, or features—all designed to capture market share. While this strategy can boost sales, it often introduces inefficiencies that quietly affect operations:
DSL Customer Portal
We provide tools in our clients' portal that give you valuable stock management insights to keep the inventory under control.
You can get a full listing of your tock on hand at any time, or you can filter the listing by restricting it to certain categories or products.
These lists are particularly used to identify slow-moving stock or ends-of-lines that are no longer available for sale on the website but are still occupying a (costly) location in the warehouse.
Key Takeaway
It is critical to balance variety and efficiency. While SKU proliferation can boost customer satisfaction, unchecked growth may lead to operational bottlenecks and increased costs. Regularly evaluating your product mix ensures you meet customer needs without sacrificing efficiency.
If you’re looking for strategies to effectively manage your inventory, feel free to reach out!
One of the benefits of our robotics technology is the
ability for rapid deployment. It took just two weeks for Paul Howie and the Körber
Supply Chain team to set up two individual Libiao
Robotics sort tables.
This speed, combined with the flexibility and scalability to adapt as our business evolves, made this solution the clear choice for us. As a 3PL, we often face unpredictable variables – but with a flexible and scalable solution, we can ensure continued success both now and in the future.
Curious about how this
technology can benefit your business? Reach out to us at aaron@dsl.co.nz. Let’s transform your
operations together!
Click on the image below for a time-lapse of the
two-week installation.
Auckland's newest shopping destination, Manawa Bay, opened in September 2024. At DSL Logistics we store, pick and deliver stock for 15 of the fashion retailers in that mall.
Our teams were busy in the weeks leading up to the opening,
coordinating initial stock orders, various ancillary activities, and even
shop-fittings, helping all of our customers to achieve a successful launch at
the new mall.
Some of our clients agreed to trust us with keys to their stores. That enables us to safely deliver goods to the mall well before rush hour and retail staff start work in the morning. This has worked so well that we decided to expand our own cartage capacity to deliver to other malls in Auckland, in the coming year.
Which Courier?
At DSL Logistics, we believe in giving our clients the freedom to choose the best courier for their needs. By staying completely neutral on courier selection, we’ve integrated our systems with all major courier companies.
This approach allows us to leverage our volume and negotiate
the best possible rates—passing those savings directly on to you, with zero
hidden markups. We also provide an optional courier account management service.
