Stock Keeping Unit (SKU)

Stock Keeping Unit (SKU) is a unique identifier assigned to a product to track its inventory. SKUs are used in inventory management to track the movement of products through the supply chain, from the point of manufacture to the point of sale.

SKUs are typically composed of a combination of letters and numbers that represent specific attributes of the product, such as the color, size, and style. SKUs can also include information about the manufacturer, distributor, or retailer.

The primary purpose of SKUs is to enable businesses to track their inventory accurately and efficiently. By assigning a unique identifier to each product, businesses can quickly and easily identify the product, its attributes, and its location in the supply chain.

SKUs are essential for effective inventory management, as they enable businesses to:

1. Monitor inventory levels: SKUs enable businesses to track the movement of products through the supply chain and monitor inventory levels to ensure that they have adequate stock on hand to meet customer demand.
2. Manage multiple products: SKUs enable businesses to manage multiple products with different attributes and variations, such as color, size, and style.
3. Analyze sales data: SKUs enable businesses to analyze sales data by product, attribute, or location, and use this information to make informed inventory management decisions.

Overall, SKUs are an essential tool for businesses to manage their inventory effectively and efficiently. By carefully assigning unique identifiers to each product, businesses can streamline their inventory management processes, reduce costs, and improve customer satisfaction.

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