How Distributors Use SKU Rationalization to Free Up Cash

Episode 56 of Wholesale & Distribution with Fexingo digs into SKU rationalization — a method distributors use to cut inventory, improve turns, and free up working capital. Lucas and Luna walk through a real-world case: a mid-size electrical distributor with 14,000 active SKUs. They found that 20% of those SKUs accounted for 80% of revenue, while the bottom 30% generated just 3% of sales and consumed 40% of warehouse space. The hosts explain how to run a Pareto analysis on your own catalog, how to handle slow-moving but necessary SKUs, and why dropping a low-margin item can actually improve customer satisfaction. If you've ever looked at your warehouse and wondered why certain products are still on the shelf, this episode gives you a practical framework to start pruning. #SKURationalization #InventoryManagement #ParetoAnalysis #Distributors #Wholesale #B2B #WorkingCapital #InventoryTurnover #WarehouseOptimization #SupplyChain #Profitability #Business #FexingoBusiness #BusinessPodcast #ChannelStrategy #LeanInventory #DataDriven #CashFlow Keep every episode free: buymeacoffee.com/fexingo