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The Supply Chain Impact of a Single SKU

The impact of a single SKU working in a supply chain is greatly underestimated. In a recent client example we established that each “little” SKU was….

Ordered 1,934,000 times per year….

o   There were 1,212,000,000 SKU-Orders in a year costing $30,000,000 or $.04 per SKU-Order. Removing one SKU would potentially save $60,000.

Delivered 1,815,358 times per year…

o   There were 907,679,000 SKU-Deliveries in a year costing $91,000,000 or $.10 per SKU-Delivery. Removing one SKU would potentially save $182,000.

Merchandised 1,063,463 times per year….

o   There were 500,908,801 SKU-Pulls in a year costing $55,246,000, or $.09 per SKU-Pull. Removing one SKU would potentially save $110,000.

Picked in warehouses 120,000 times per year….

o   There were 12,000,000 SKU-Picks in a year costing $65,000,000 or $5.42 per SKU-pick. Removing one SKU would potentially save $130,000.

Made or bought 60,000 times per year…

o   There were 6,000,000 SKU-Lots in a year, costing $47,000,000 per year.

HANDLED IN SOME WAY 7,000,000 times per year.

o   REMOVING ONE SKU COULD POTENTIALLY SAVE UP TO $480,000/year; TEN SKUs $4,800,000/year; ONE HUNDRED SKUs $48,000,000/year

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