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:
- Track inventory
- Manage variants
- Facilitate picking
- Enable analysis
- 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.
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