Introduction:  The costs of maintaining supplies (including medical devices) can represent up to 40% of a hospital operating budget. Reducing supply chain costs creates a significant savings opportunity for hospitals; however, strategies and value drivers may vary across hospitals, and have not been systematically reported. The objective of this research was to conduct a literature review to identify studies that report on the qualitative or quantitative value of stock-keeping unit (SKU) reduction or product standardization, and the potential impact to the hospital(s). Methods: A search of PubMed, hospital trade journals, and online materials was conducted using terms including: SKU reduction, product standardization, efficiencies, value, or quantification. All study types were reviewed including case studies, observational studies, and interviews. Results: Ten studies quantified direct cost savings observed with SKU reduction or product standardization initiatives. The savings achieved with these initiatives varied from $15,000 to $800,000 annually. This wide range may be attributed to variations in calculation methods, size of the initiative, therapeutic area, and types of products. These savings were typically achieved through standardization to lower cost products through economies of scale. It has been reported that the average IDN with a $500 million annual supply budget may save $30 million annually by redesigning its supply chain to emphasize SKU rationalization, standardization and reduction. Several studies reported on the additional qualitative value and efficiencies observed with SKU reduction. These typically included savings in time and space, reduction in product wastage, increased clinician familiarity with products, improved work flow, and potentially improved care and outcomes. Conclusions: The literature demonstrates that important cost savings can be achieved through SKU reduction and standardization initiatives within hospitals. This area of research would benefit from the development of specific costing methods to more comprehensively quantify the full value of these supply chain initiatives.