Rationalizing your catalog doesn’t have to alienate loyal clients—if you do it with transparency and purpose.
Distributors in the glass, ceramics, and refractories space often accumulate SKUs like barnacles—one-off items for special orders, obsolete products that haven’t sold in years, or outdated specs no longer used by modern applications. Rationalizing that catalog is essential for operational health. But sunsetting SKUs—especially in industries where customers expect long product life cycles—requires surgical precision.
Done poorly, product sunsets can frustrate long-time buyers, trigger unplanned substitutions, or even cost you the account. Done well, they build credibility, boost service levels, and strengthen relationships.
Here’s how to run a product sunset program that keeps trust intact:
Step 1: Start with Clean Data
Before touching your catalog, ensure you have 18–24 months of clean sales, order, and inventory data. Identify:
SKUs with no movement in the last year
Items sold to fewer than 3 clients
Low-margin SKUs with high storage or handling costs
These are your sunset candidates—but data alone doesn’t dictate the outcome.
Step 2: Classify the Sunset Type
Not all SKUs die the same way:
Hard Sunset: Full removal with no substitute (e.g., discontinued refractory from a shuttered supplier).
Soft Sunset: Phaseout with substitution (e.g., replacing 95% alumina brick with a newer 90% grade for the same applications).
Custom-Only Transition: Retired from general stock, but available by request for MOQ + lead time.
Label each item accordingly. This helps your sales and service teams manage the customer narrative.
Step 3: Engage Sales Teams Early
No one wants a client to find out their go-to SKU has vanished from a website or quote tool without warning. Give your reps 30–60 days’ notice. Arm them with:
Replacement recommendations
Talking points on why the sunset is happening
Lead time details if clients want to bulk-buy before cutoff
Step 4: Communicate Transparently
Send formal notices to affected customers. Be specific. Avoid vague terms like “streamlining” or “portfolio alignment.” Instead, say:
“Due to supplier discontinuation, we will retire SKU 1748-Z effective July 15. The recommended substitute is SKU 1750-A, which offers similar thermal shock resistance with shorter lead times.”
Make it about improving service, reducing lead time variability, or ensuring quality—never about cutting costs.
Step 5: Document the Transition
Update ERP, website, and internal documentation. Create a reference sheet for substitutions. Train customer service teams to speak confidently about the changes.
Step 6: Monitor Feedback
Sunset programs aren’t fire-and-forget. Track lost sales, substitution success, and customer complaints. If clients push back, investigate whether the original SKU filled a unique need. If it did—reconsider your decision or adjust your messaging.
:
Sunsetting SKUs is a necessary part of smart product planning. But in industries built on reliability—where furnace linings and laminated glass specs don’t change overnight—distributors must manage change with clarity and care. A well-run sunset program doesn’t erode trust—it proves you’re the kind of partner who plans, listens, and communicates. And in this business, that’s worth more than any one SKU.
