If your inventory feels like it’s growing faster than your revenue, it’s time to take SKU rationalization seriously.
In glass distribution, especially across architectural, automotive, and specialty markets, product variety is often seen as a strength. But what starts as a customer-first strategy can spiral into a margin-diluting inventory trap if not managed properly.
Enter SKU rationalization—the strategic process of reviewing, streamlining, and optimizing your product assortment. For glass distributors handling hundreds of SKUs across different tints, coatings, thicknesses, and edge treatments, it’s the foundation for cost control and commercial clarity.
Why SKU Proliferation Happens in Glass
You’re probably not launching unnecessary SKUs. More likely, your catalog grew because:
A large developer wanted a custom tint
A glazing contractor requested a unique edge finish
A fabricator needed glass pre-laminated for a specific climate zone
Each request made sense at the time. But when 40% of your SKUs account for less than 5% of revenue, you have a problem.
The Hidden Risks of Too Many SKUs
Warehouse inefficiency – Picking, packing, and stacking become slower
Forecasting errors – Harder to predict demand, increasing overstock and stockouts
Customer confusion – Sales teams struggle to explain value or make the right match
Margin erosion – Low-volume SKUs rarely justify their handling cost
For glass, where shipping, storage, and breakage are high-risk, bloated catalogs amplify logistics costs.
What Rationalization Looks Like
It’s not just cutting products—it’s aligning your SKU mix with what drives:
Volume
Margin
Strategic value (e.g., spec-in products, bundling leverage)
Steps typically include:
Data analysis by region, channel, and customer
Internal scoring of each SKU’s financial and strategic value
Cross-functional review: sales, ops, finance
Phase-out plan for low-performers
The Payoff
Glass distributors who rationalize SKUs typically see:
10–15% reduction in working capital tied up in stock
Faster picking and loading times
Higher quote-to-order conversion due to simplified choices
Improved negotiating power with upstream fabricators
More SKUs don’t mean more revenue—they often mean more waste. Rationalization helps glass distributors refocus on profitable, practical inventory—and serve customers better by offering what truly moves the market.
