What is a Stock Keeping Unit (SKU)? Definition
A stock keeping unit (SKU) is a code that uniquely identifies a product within your inventory management system. Every time a product is added to your inventory, it is given a SKU. This code helps you keep track of products and helps you manage your inventory more efficiently. While every business will have their own system for assigning SKUs, there are some common elements that are typically included in a SKU. These elements can be used to help you understand what information is being conveyed by a SKU, and how you can use it to better manage your inventory.
What is a SKU?
A SKU (stock keeping unit) is a unique identifier for a product in a retail or online store. A SKU can be a combination of letters and numbers, and is used to track inventory and help store staff quickly find and replenish products on shelves.
When a product is first stocked in a store, it is assigned a SKU. The SKU remains the same even if the price or other details about the product change over time. This makes it easy for store staff to locate the product and keep track of inventory levels.
SKUs are also used by online stores to identify products in their database. When customers add items to their shopping cart, the store uses the SKU to retrieve information about the product, such as price and availability.
Many businesses use barcodes that encode the SKU number on products. This makes it quick and easy for store staff to scan products and enter them into the POS (point of sale) system.
How do SKUs help businesses?
A SKU is a unique identifier for a product that allows businesses to keep track of their inventory. By assigning each product a SKU, businesses can more easily order, ship, and receive products. Additionally, businesses can use SKUs to track sales and monitor trends.
What information do SKUs contain?
In order to track inventory, every item in a company’s stock must have a stock keeping unit, or SKU. This is a code that uniquely identifies the product and allows it to be tracked as it moves through the supply chain.
A SKU can be made up of letters and numbers, and each element of the code has a specific meaning. For example, the first letter might identify the product’s category, while the next few digits might indicate the manufacturer, model and color. The final digits usually identify the size or other variations of the product. By deciphering the SKU, a company can quickly determine what an item is and where it needs to go.
While every company has its own system for creating SKUs, there are some common practices that are used to make sure codes are consistent and easy to read. For instance, most companies use all uppercase letters and avoid special characters like dashes (-) or periods (.)
How are SKUs assigned?
SKUs are assigned by retailers or manufacturers to track inventory and pricing for products. Each SKU is unique and identifies a specific product. SKUs can be alpha-numeric, numeric, or alphanumeric.
Tips for creating effective SKUs
A SKU, or stock keeping unit, is a code that uniquely identifies a product within your inventory. An effective SKU will be easy to remember and quick to reference when needed. To create an effective SKU for your products, follow these tips:
1. Keep it simple – A SKU should be easy to remember and quick to reference. Avoid using special characters or anything that could be confusing.
2. Make it unique – Each product in your inventory should have its own unique SKU. This will help you keep track of individual items and avoid confusion when ordering or stocking shelves.
3. Use consistent patterns – Choose a pattern for how you will assign SKUs to new products as they are added to your inventory. This could be based on product type, size, color, etc. Having a consistent system will make it easier to find specific items in your database.
4. Use uppercase letters and numbers – When creating a SKU, use all uppercase letters and numbers (no spaces). This will help ensure accuracy when inputting data into your system.
Conclusion
In conclusion, a SKU is a code that is assigned to a product by a company in order to track that product throughout its lifecycle. This code can be used to identify the product, learn more about how it was made, and even track sales data. By having this code attached to a product, businesses can save time and money while still ensuring that their products are high quality and meet customer demands.