What is an SKU?

In a warehouse setting, SKUs are essential for maintaining an organized, efficient, and accurate inventory system. They play a crucial role in ensuring that products are properly tracked, managed, and processed, leading to smoother operations and better customer satisfaction.

• Unique Code: Each SKU is a unique combination of letters and numbers that distinguishes one item from another.
• Attributes: SKUs often include details like brand, product type, color, size, and other distinguishing features.
• Internal Use: Primarily used within a company to manage and track inventory.

• Inventory Management: Helps in tracking inventory levels, making it easier to manage stock and reorder items when necessary.
• Sales Tracking: Assists in monitoring sales data for individual products, enabling better sales analysis and forecasting.
• Operational Efficiency: Improves efficiency in warehousing and order fulfillment by providing a clear identification system for products.
• Data Accuracy: Enhances the accuracy of inventory and sales data, reducing errors and discrepancies.

• Retail: Stores use SKUs to manage their product inventory, ensuring they can quickly find and track each item.
• E-commerce: Online retailers assign SKUs to each product to streamline order processing and inventory tracking.
• Manufacturing: Manufacturers use SKUs to track parts and finished products throughout the production process.

SKUs are essential for effective inventory management and play a critical role in the smooth operation of retail, e-commerce, and manufacturing businesses. By using SKUs, businesses can enhance their inventory tracking, improve operational efficiency, and make more informed decisions based on accurate data.