Retailers Should Reduce Their SKUs for a Healthier Supply Chain. Here’s Why.

 

In the current retail and consumer packaged goods (CPG) landscape, the industry faces significant challenges in maintaining a healthier supply chain. A 2023 Consumer Survey by O9 Solutions underscores this, revealing that over half of consumers have encountered product shortages, leading to a shift towards price-based purchasing over brand loyalty and reduced shopping due to price hikes. This situation presents a complex scenario for the CPG and retail sectors, marked by increased marketing costs to attract disloyal customers, higher product and expediting costs, and strained supplier relationships.

Amidst the rapidly changing landscape of consumer demands and complex supply chain challenges, what strategies can retail and CPG giants employ to remain competitive and efficient? 

Piyush Shah, Ph.D., Assistant Professor of Supply Chain Management in the Department of Information Systems, Analytics & Supply Chain at Florida Gulf Coast University brings a wealth of knowledge and practical solutions to the forefront, focusing on SKU optimization and the importance of strategic partnerships to promote a healthier supply chain.

“We need similar innovations coming where CPG companies and retailers have to work together to have some sort of local assembly, local packaging, and local production so as to ensure that customers get the products that they need and at the same time the inventories and the cost stay controlled,” Shah said.

Article written by Sonia Gossai

Follow us on social media for the latest updates in B2B!

Image

Latest

The Tech-Enabled Hospital of the Future: Implications for Care Delivery
The Tech-Enabled Hospital of the Future: Implications for Care Delivery
March 12, 2026

Gone are the days when a hospital was simply a place where patients received care. Today’s hospitals are rapidly evolving into highly connected ecosystems powered by advanced technology, networked devices, and real-time data. The modern hospital is no longer confined to physical walls—it’s a dynamic digital environment where data flows seamlessly, AI supports clinical decisions,…

Read More
career
Stop Chasing Titles, Build a Career That Matters: A CAO’s Advice on Long-Term Success
March 11, 2026

Career advice in finance and accounting often centers around promotions, titles, and compensation. But in an era where professionals frequently change jobs every few years—the average American worker now stays in a role for less than four years—industries are facing growing talent shortages and reevaluating what long-term career success looks like. The question many…

Read More
Career success
A CEO’s Blueprint for Career Success: Leading with Love to Drive Performance and Culture
March 10, 2026

Leadership right now feels heavier than it did just a few years ago. Teams are stretched, expectations are high, and many employees are quietly disengaged. In fact, Gallup’s 2025 U.S. data shows that only about 31% of employees are actively engaged at work, leaving the majority feeling disconnected or indifferent. For CEOs and senior…

Read More
employer-sponsored apprenticeships
The Degree That Pays You Back: How Employer-Sponsored Apprenticeships Are Rewriting Higher Ed
March 9, 2026

Higher education is under pressure. Over the past few years, public confidence in the value of a four-year degree has declined significantly, with fewer Americans expressing a strong belief that traditional higher education delivers a worthwhile return on investment. At the same time, employers consistently report that graduates lack job-ready skills—particularly the “durable skills”…

Read More