What Product Rationalization Reveals About Your Future Revenue Trajectory
Most companies carry more SKUs than their data can clearly explain in financial terms. When the portfolio becomes crowded, it is harder to distinguish which Stock Keeping Unit SKUs genuinely drive revenue, which erode margins, and which quietly slow cash conversion. Product rationalization brings clarity to the portfolio. The moment low-performing SKUs are removed, the financial picture becomes clearer. Revenue concentration, margin stability, volatility patterns, and working-capital drag are no longer hidden behind volume but appear as measurable signals. For FP&A teams, a cleaner portfolio improves the quality of financial insigh t. It enables a more reliable view of revenue trends, risk exposure, and how the business is likely to behave as it scales. Rather than forecasting through noise, teams can base decisions on data that reflects the true economics of the portfolio. This article explores what rationalization immediately reveals, how it changes the structure of the FP...