SKU Rationalization

SKU rationalization that runs every week, not once a quarter.

We encode your purge rules — no sale or receipt in 24 months, weeks of supply past two years — inside the POS/ERP your stores already run. Our AI reads every item record against them on a schedule, and only the exceptions reach a merchant.

  • AI implementation services
  • Your purge rules, encoded
  • Exception-only queue for merchants
  • No new system for your stores

Built with the leading AI platforms

NVIDIAAnthropic
Peter Enestrom, founder of Zaigo

Led by Peter Enestrom and the Zaigo AI & engineering team

YaleColumbia UniversityMicrosoft

The quarterly purge

A SKU rationalization process that runs once a quarter is already behind.

From retail operations and merchandising teams we have sat with: a hardware retail co-op member running ~20 stores and ~$100M in revenue, ~200K item records fanning out to 4.4 million item-store rows on an Epicor Eagle-class POS/ERP — and an item master that only gets cleaned when someone declares a quarter for it.

  • “Anything not sold or received in 24 months.”

    The rule is simple; running it is not. When the purge finally ran, the line got drawn at 2022 and 100,000 items came out of the item master in a single pass — a measure of how long the master had gone untouched.

  • Every acquisition bolts on another item list

    Six acquisitions a year, and each one arrives with its own item file — the same product under four item numbers, renamed vendors, duplicates nobody reconciles. The item master only grows.

  • Dead SKUs still burn tag labor

    “Is the juice worth the squeeze?” Price changes get pushed for items with zero on hand — inside 189,000 physical price changes a year — because the item master never told the pricing run those SKUs were gone.

  • The sync inherits the mess

    A weekly full snapshot every Sunday at 4am, plus hourly deltas of retail, promo, and quantity changes, reconciling 4.4 million item-store rows against ~200K item records. Every duplicate and dead item is drift the sync has to carry — the cadence is your maximum drift window, and a dirty master spends it.

  • The items customers remember get no attention

    The two or three hundred known-value SKUs — the ones where most people can figure out what Windex should cost — set your price image. They get no attention while the team is buried under 100,000 records nobody maintains.

What manual costs

A dirty item master taxes everything that touches it.

Measured inside a hardware retail co-op member’s operations. Your numbers will differ — the item-master audit puts figures on one item file before anything changes.

100,000Items removed in a single quarterly purge when the line was drawn at 2022 — anything not sold or received in 24 months
4.4MItem-store rows the weekly full sync and hourly deltas reconcile — every dead or duplicate item adds drift
6 / yearAcquisitions bolted onto the item master, each carrying its own duplicates and naming habits

From an anonymized engagement — a ~20-store, ~$100M-revenue hardware retail co-op member on an Epicor Eagle-class POS/ERP

How it works

Exception reporting turns the purge into a standing rule.

No new system for your merchants to learn. Our AI reads every item record against your purge rules every week — your people decide only what the rules can’t.

  1. 01

    Item-master audit

    One item file. We quantify the damage — items with no sale or receipt in 24 months, weeks of supply past two years, sell-through rates near zero, duplicates from acquisitions — before anything changes.

    Weeks 1–2
  2. 02

    Encode the purge rules

    Your thresholds — the 24-month line, the two-years-of-supply flag — encoded against the POS/ERP you already run. The AI reads all ~200K item records against them on a schedule; nothing waits for a declared quarter.

    Weeks 3–8
  3. 03

    Exception-only queue

    The rule proposes; the merchant disposes. Every flagged item lands with its last-sale and last-receipt evidence, a human approves each removal — trust but verify first — and 30/60/90-day operating rules keep the queue cleared instead of admired.

    Ongoing
Not another assortment tool

Exception based reporting beats the quarterly spreadsheet purge.

The software sells another dashboard of the whole item file — the same 200,000 rows every Monday, none of them decided. Assortment suites ship with generic lifecycle thresholds; your stores run on exceptions — the 24-month line, the acquisition duplicates, the special orders that never should have become SKUs.

We are neither. We are an AI operating partner: we encode your purge rules into the systems your stores already run, and our AI keeps reading the item master after go-live — so the master stays clean between quarters and the next 100,000-item purge never becomes necessary. One boundary, plainly: what to do with the dead stock on hand — mark it down or return it — is excess-inventory work. This page decides which SKUs should exist at all.

Peter Enestrom, founder of Zaigo
Who builds it

Led by Peter Enestrom.

Co-Founder — leads AI & Engineering

Pete Enestrom

Every engagement is led personally by Pete, working with the Zaigo AI & engineering team from the two-week audit through the production handover. The person who scopes the work is the person who builds it.

Education
Yale & ColumbiaGraduate
Background
Microsoft & IntelFormer
Experience
Exited FounderVenture-Backed

Background

Questions

Asked by retail ops and merchandising leads.

The straight answers, before you book anything.

What’s holding your business back?

A workflow ready for automation. An AI product you want to build. A problem that has sat on the roadmap for years. Let’s talk about what it would take to solve it.

Talk to Zaigo