Photo: ©GOPIXA – STOCK.ADOBE.COM VEVEY, SWITZERLAND — Nestle SA’s stock-keeping unit (SKU) rationalization program has evolved from a short-term initiative to a company-wide strategic priority. Management is committed to improving the business’ financial performance by doing more with less. Initially, Nestle sought to alleviate supply chain bottlenecks by reducing product line complexity. The goal was to ensure the fastest turning SKUs were on shelf as markets around the world emerged from the pandemic. “Once we started doing that, we saw there was tremendous promise in it, and we scaled it up and accelerated it quite a bit,” said Ulf Mark Schneider, chief executive officer, in a Feb. 16 conference call to discuss annual results. “And clearly, we noticed that we haven’t done that sort of exercise for a long period of time.” The focus has now shifted from individual SKUs in a line to brands, segments and geographies, according to the company. “In cases where we cannot sell a business, we’re not afraid of walking away from it as long as we do it right,” Mr. Schneider said. As an example, he pointed to Nestle’s pending withdrawal from the Canadian frozen food market. “This is a book of business […]
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