Re: And the Pet Proliferation...

SKU proliferation continues to be an issue with all product lines that target the end consumer. Some how, the average consumer has gotten it into their head that they deserve to have a toothpaste that whitens, fights cavities, is winter green flavored, is packaged in a 4.5 oz package instead of the 5.4 oz package, has a no drip top and the tube stands on its own. And why the consumer will not just purchase toothpaste that cleans their teeth, I just don't know.

That that sort of highly tailored product mix puts serious strain on the supply chain - how much more difficult is it to manage your manufacturing or distribution when you have to deal with 10,000 items instead of 1,000 items?

I don't have any answer, I just know that the supply chain professionals are having to adapt to these market forces every single day.

R Aims.

Re: And the Pet Proliferation...

I've seen this recently myself. I visited a bourbon distillery just a couple of weeks ago. They have the second largest supply of aging bourbon in the world. Well that supply allows them to create many different SKUs but they are now importing hundreds of SKUs and redistributing these as well as creating brand new products and types of bottling internally.

SKU proliferation is killing them, and when you can't find inventory in the liquor producing business the IRS assumes you sold it and you have to pay tax on it! A pretty serious problem.

Re: And the Pet Proliferation...

It will be interesting to see if the current economic climate and recessionary times ahead will alter the average american consumers spending habits so that they are willing to settle for the toothpase that whitens and fights cavities but only comes in one or two flavors and one or two package sizes. Should this be the case however, I still think that the complexities of many manufactured consumer goods as well as industrial products will continue to push SKU proliferation on the supply chain.

Neil M.