SKU Management and Overhead Reductions to Save a Labware Diagnostics Family

October 26, 2021

400 SKU / 3 product labels of labware diagnostic disposables (pipette tips, vials, trays) being sold through distribution, largely to university research laboratories. The company had $2 million in negative EBITDA in the prior year and hadn’t made money in several years. We made them a turnaround plan:

  • SKU rationalization – focus on the SKUs that can grow with improved costs
  • Migrate production to more automated molding facilities
  • Reduce overhead and close plant

 

Which led to:

  • $1M TTM EBITDA Improvement
  • 6 Run-rate EBIDTA Improvement​
  • Taking Stock of SKU Optimization

Navigating stock and product lines among constantly shifting customer demand can overwhelm any business, regardless of how big, small or successful they may be. Moving targets can disrupt any business, and we  identify shatterpoints, sunk inventory costs and stagnant operations and help install inventory management best practices. Our team has helped untie knotted SKU systems to improve cash flow, warehouses and bottom lines.