In manufacturing, complexity can quietly erode efficiency. Over time, new product variations are added to meet customer needs or respond to market changes, but rarely does anyone stop to evaluate which ones are still essential. For one large coatings manufacturer, this led to an expanding list of interior coating SKUs.
Individually, each SKU served a purpose. But collectively, they were creating unnecessary strain on operations, driving up inventory holding costs, and tying up valuable working capital. The manufacturer knew simplification was possible, but they needed a structured, data-driven way to make it happen without disrupting production or compromising performance.
Thankfully, their steel drum supplier had a solution. By utilizing North Coast Container’s continuous improvement processes, we were able to reduce SKU count and improve operations.
The Challenge: Managing a Large SKU Portfolio
A large manufacturer in the coatings industry was carrying an extensive range of interior coating SKUs. Many of these SKUs were near-duplicates, with small variations in coating specifications, performance ratings, or closure options that had built up over time.
Managing such a large SKU portfolio created multiple challenges:
- Excess inventory tying up working capital
- Increased storage requirements in already busy warehouses
- Procurement complexity leading to longer lead times and potential ordering errors
The manufacturer knew there was an opportunity to simplify, but without a clear process for identifying redundancies or validating changes, they risked creating gaps in their product offering or disrupting production.
The Solution: NCC’s Packaging Supply Improvement Process (PSIP)
North Coast Container (NCC) partnered with the coatings manufacturer using its Packaging Supply Improvement Process (PSIP), a structured, 9-step continuous improvement system designed to help customers streamline their packaging operations while maintaining performance standards.
NCC’s PSIP team worked alongside the customer to:
- Assess the current SKU portfolio and map out every interior coating specification in use.
- Identify redundancies by comparing performance ratings, regulatory requirements, and customer needs.
- Develop a consolidation plan that reduced SKU count without sacrificing functionality or compliance.
- Validate proposed changes through testing and stakeholder review to ensure smooth implementation.
The PSIP approach gave the customer a clear roadmap for SKU optimization, backed by data and operational insight, not guesswork.
The Results: Streamlined Inventory and Lower Working Capital
By implementing NCC’s PSIP recommendations, the coatings manufacturer was able to take control of a challenge that had been quietly impacting their efficiency and profitability for years.
Through a structured, data-driven approach, NCC helped the customer identify exactly which interior coating SKUs were essential and which could be consolidated without sacrificing performance or compliance. This gave the manufacturer the clarity and confidence to streamline their portfolio while keeping operations running smoothly.
The results were both immediate and long-term. They saw a leaner, more efficient operation, lower costs, and better visibility into their supply chain. Just as importantly, their teams could now focus on the SKUs that truly mattered to their business and customers.
In the end, the company had:
- Reduced active SKU count, eliminating redundant or low-volume coatings
- Lowered inventory holding costs and freed-up warehouse space
- Improved ordering and procurement efficiency with a simplified SKU list
- Reduced working capital previously tied up in slow-moving stock
- Better operational focus with less complexity for planning, production, and quality control
Partner with NCC Today
At NCC, we believe packaging supply should support your business, not slow it down. Through PSIP, we help customers uncover opportunities to simplify, reduce waste, and improve efficiency across their supply chain. Whether it’s SKU optimization, pallet configuration, vendor management, or delivery planning, NCC’s process provides measurable improvements.
Contact us today to learn more about PSIP and how it can support your business.
