A Stock Keeping Unit (SKU) is a business term used to denote unique product specifications within inventory procurement. SKUs are used by organizations to track and manage products in their inventory, enabling accurate and efficient management of stock levels. By assigning an individual SKU to every item in your catalogue or inventory, it becomes easier to identify, differentiate, and organize them. SKUs also help with forecasting inventory needs, managing costs, setting prices, replenishment cycles, and tracking sales.