SKU

SKU – Stock Keeping Unit, commonly abbreviated as SKU, is a unique identifier or code that businesses use to track inventory items for the purposes of stocking, selling, and managing. The SKU serves as an internal shorthand and organizational tool that enables companies to quickly locate, quantify, and manage the various products within their inventory system. It is often alphanumeric and customized to contain information relevant to the business and the specific item it represents.

SKUs are not standardized across industries or companies; rather, each company develops its own SKU coding system tailored to its unique needs. The SKU system usually encapsulates a variety of details about the product, such as brand, size, color, and type, to help streamline the inventory management process. It is crucial to note that SKUs differ from Universal Product Codes (UPCs) or International Standard Book Numbers (ISBNs), which are standardized identification systems used universally for products.

For retailers and wholesalers, SKUs are instrumental in a range of functions including pricing, order fulfillment, and reporting. They are widely used in point-of-sale (POS) systems, warehouse management systems, and online e-commerce platforms to facilitate real-time tracking and management of inventory levels. In complex supply chains, the use of SKUs is essential for ensuring the accurate tracking and movement of products from the manufacturer to the distributor, and eventually to the retailer or end consumer.

In summary, a Stock Keeping Unit (SKU) is a critical element in inventory management, providing a detailed, yet succinct, snapshot of individual items to streamline various business operations. Its primary purpose is to ensure the efficient and accurate handling of goods as they move through the supply chain, contributing to optimal business performance.