In simple terms, SKU proliferation, or the proliferation of stock-keeping units (SKUs), is the process by which a retailer or distributor increases the number of products (SKUs) that it offers to customers. It’s a natural part of a business and something that every operation will go through as it learns more about what its customers want and tailors its offerings to meet those desires.
SKU proliferation is a common problem and occurs when a company offers too many variations of a product, resulting in increased costs, complexity, and difficulty in managing product and price configurations. And that’s where CPQ (Configure-Price-Quote) software steps in to help eliminate or limit SKU proliferation by streamlining the product configuration and pricing process.
CPQ software allows companies to easily create and manage product configurations. This means that instead of creating a separate SKU for each product variation, a company can use the CPQ engine to create a single SKU with different options and configurations. This reduces the number of SKUs that need to be managed and ensures a more convenient sales process and customer experience.
In addition to reducing the number of SKUs, CPQ also allows companies to manage products and pricing more effectively. With CPQ, companies can easily set up pricing rules based on different factors such as product configuration, volume, and customer type. This allows them to price their products and reduce the need for multiple SKUs to account for different pricing structures.
Another key benefit of CPQ is that it enables smooth integration with the whole sales process, this way the sales team can easily provide accurate and real-time quotes to customers, streamlining the sales process and increasing the chances of closing deals faster.
AppXite is being differentiated from other platform providers by a state-of-the-art CPQ engine with advanced product and pricing configuration for eliminating or limiting SKU proliferation for any cloud service type, complexity, or billing model.