SKU

What is a SKU?

A Stock Keeping Unit (SKU) is a unique identifier assigned to products to enable tracking and management throughout the supply chain. This crucial element of inventory management helps organizations maintain accurate stock records while facilitating efficient order processing and fulfillment.

Understanding SKU management

Modern SKU systems combine standardized naming conventions with intelligent coding structures to create meaningful product identifiers. These systems enable accurate tracking while providing valuable product information through the SKU structure.

Key SKU components

Essential elements include:

• Product identification
• Variant details
• Location information
• Category coding
• Status indicators

SKU implementation strategies

Organizations use SKUs to:

1. Track inventory
2. Manage variants
3. Facilitate picking
4. Enable analysis
5. Support automation

System requirements

Effective SKU management needs:

• Standardized conventions
• Logical structures
• Integration capabilities
• Maintenance procedures
• Quality controls

Operational impact

Well-designed SKU systems improve:

• Inventory accuracy
• Operational efficiency
• Order fulfillment
• Analysis capabilities
• System integration

Performance optimization

Organizations must maintain consistent SKU management practices while regularly reviewing and updating their systems to ensure optimal performance.