The industrial distribution landscape is dynamic, complex and rapidly evolving. Whether focusing on specific sectors or serving broadline customer needs across numerous industrial end markets and product sectors, industrial distribution companies typically offer tens of thousands, if not millions, of product SKUs, generating a high volume of transactions.
Over time, industrial distribution businesses tend to offer more SKUs in order to leverage the core platform they already have in place. Although SKU expansion drives overall growth, it also makes it more challenging for businesses to understand their entire SKU portfolio’s performance and optimize them accordingly.
Some industrial distribution companies are finding ways to gain insights into SKU performance and optimization by applying advanced analytics tools to their data-rich transaction records. With better access to more data and improved analytics tools that make it easier to mine the data efficiently, companies are using insights from advanced analytics to sharpen their sales and marketing strategies and manage inventory more effectively.