Stock-Keeping Unit (SKU)

A Stock Keeping Unit (SKU) is a unique identifier used by retailers and manufacturers to track and manage inventory. It is a specific code assigned to a product that helps in distinguishing it from other products. SKUs play a vital role in inventory management, sales tracking, and operational efficiency.

Key Characteristics of SKUs

1. Uniqueness: Each SKU is unique to a specific product and often includes details such as size, color, and other attributes.
2. Customizable: Companies often create their own SKU systems to suit their inventory needs, allowing for flexibility in coding.
3. Alphanumeric: SKUs typically consist of a combination of letters and numbers, providing a shorthand method to describe a product.

Functions of SKUs

1. Inventory Management: SKUs help businesses keep track of stock levels, identify reorder needs, and manage warehouse space efficiently.
2. Sales Tracking: By using SKUs, companies can analyze sales data to determine which products are popular, aiding in forecasting and decision-making.
3. Product Identification: SKUs allow for easy identification of products within a store, ensuring that the right items are stocked and sold.
4. Customer Experience: Accurate SKUs