It’s not just a procurement decision. Here’s how to assign ownership of SKU cuts without turf wars.
Ceramic product catalogs can balloon quickly. Between high-purity alumina, cordierite shapes, and custom tile runs, distributors often carry hundreds—if not thousands—of ceramic SKUs that no longer reflect demand or profitability. So who decides what stays and what goes?
The short answer: It should be a decision owned collaboratively, but anchored in clearly defined roles and supported by shared metrics.
Why This Isn’t Just a Procurement Issue
It’s tempting to dump SKU rationalization on purchasing teams. After all, they place the orders and manage vendor relationships. But that narrow view leads to blind spots.
Consider this: a buyer might flag a ceramic crucible SKU as dead stock based on low turn rates. But what if that SKU is the only reason your largest materials testing client stays loyal? Procurement alone won’t see that strategic nuance.
Who Should Have a Voice
Sales Account Managers
Sales has the relationship context. They know which clients rely on which products—even those that aren’t reordered often. Their input helps prevent cutting SKUs that have long-term value or seasonal relevance.
Operations/Warehouse Leadership
They see inefficiencies firsthand. A SKU might have moderate sales, but if it creates bottlenecks, storage issues, or mis-picks, it’s a drag on performance. Ops brings a physical lens to the conversation.
Category or Product Managers
These are the internal “editors” of your catalog. They analyze product families and usage overlap, ensuring redundancy is called out—especially in cases like five nearly identical cordierite kiln furniture pieces.
Finance or Inventory Controllers
They see the capital tied up in low-turn SKUs and can offer a portfolio-wide perspective. Gross margin contribution, GMROI, and working capital impact are all finance-side levers that should inform SKU survival.
Creating a Decision Framework
Rather than debate each SKU in isolation, use a matrix approach. For example:
High Sales / High Margin → Keep
Low Sales / Low Margin → Cut
High Sales / Low Margin → Evaluate for margin lift
Low Sales / High Margin → Keep with conditions or make-to-order
Set thresholds for what qualifies as low-turn (e.g., fewer than two picks per year) and apply these standards consistently.
Include Customer Impact Modeling
Before removing a SKU, ask: What’s the potential fallout? If one SKU supports three low-value customers, it might be worth sunsetting. But if it underpins a key segment—even at low velocity—consider alternatives like consignment stock, vendor drop-ships, or custom order paths.
The Role of the Final Arbiter
Assign ultimate decision rights to a category manager or cross-functional panel. Don’t let SKU decisions get bottlenecked by consensus paralysis. Establish rules, hear the input, then act decisively.
:
SKU rationalization in ceramics is as much about governance as it is about metrics. The right decision-making model brings together the insight of sales, the data of procurement, the practicality of ops, and the clarity of finance. When each team has a voice—but not a veto—your ceramic catalog becomes leaner, smarter, and more aligned to where your margins really are.
