Reduce SKUs and Free Up Warehouse Space | North Coast Container

Written by Dave Lorz | Aug 5, 2025 1:00:00 PM

Overabundant product variations and low efficiency cause many operations to struggle with SKU complexity. One North Coast Container (NCC) customer, a manufacturer running high-volume production across multiple lines, was managing a long list of packaging SKUs, including several low-use, specialty versions.

Over time, the buildup of SKUs began to impact warehouse space, procurement planning, and inventory turnover. The customer suspected they could simplify, but didn’t know where to start or what the operational risk might be.

NCC’s Packaging Supply Improvement Process (PSIP) team stepped in to help evaluate the full SKU portfolio and uncover opportunities to streamline.

The Challenge: Too Many SKUs, Not Enough Efficiency

The customer was managing dozens of SKUs, many of which were near-duplicates with only minor differences in packaging or specifications. As product lines evolved, so did the packaging requirements, and over time, the inventory became fragmented and difficult to manage.

The impact was felt in several ways:

Overstocked materials that saw little use
Slower inventory turns and more frequent reordering
Wasted warehouse space and increased carrying costs
Operational complexity on the production floor

The customer wanted to simplify, but needed to maintain product integrity and meet existing regulatory or customer-specific packaging requirements.

The Solution: SKU Rationalization Through NCC’s PSIP

NCC’s PSIP team reviewed the customer’s current SKU portfolio and inventory mix in detail. Through this process, the team identified redundant SKUs and proposed consolidations based on:

Overlapping specs and functionality
Compatibility with filling, handling, or transport systems
Usage history and order frequency
Customer and compliance requirements

After walking through each item with the customer’s supply chain and operations leads, NCC recommended a rationalized SKU set that would reduce unnecessary variations without creating packaging gaps.

The transition plan included:

Eliminating or phasing out redundant SKUs
Introducing standardized options that could serve multiple product lines
Supporting the customer in updating specs, labeling, and ordering processes

The Results: Simplified Inventory, More Space, and Smoother Operations

By following NCC’s recommendations, the customer streamlined its active SKUs. This change freed up valuable warehouse space, simplified ordering and receiving processes, and reduced the risk of mismatched or excess inventory.

Operationally, fewer SKUs meant:

Fewer disruptions on the line
Faster training for new team members
Easier forecasting and procurement
Lower storage and carrying costs

By leaning on NCC’s process and expertise, the customer achieved real operational improvement without sacrificing performance or compliance.

“NCC helped us step back and look at the full picture. We knew things had gotten complex, but they helped us simplify it in a way that worked with our systems – and freed up space we needed.”
— Supply Chain Manager, Manufacturing Customer

Helping Customers Work Smarter

At North Coast Container, we use our Packaging Supply Improvement Process (PSIP) to help customers reduce complexity, improve efficiency, and make smarter packaging decisions. From SKU rationalization to vendor management and pallet optimization, we help operations run better, not just cheaper.

Our PSIP approach is guided by a proven 9-step continuous improvement framework, which you can explore here to see how we help identify inefficiencies and deliver measurable improvements across your supply chain.

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