What is a SKU?
A SKU (Stock Keeping Unit) is a unique alphanumeric code that identifies a specific product for inventory and tracking purposes. Each variation of a product (size, color, style) typically has its own SKU.
SKU vs UPC
- SKU: Internal identifier, unique to each company
- UPC: Universal Product Code, standardized barcode
A product has one UPC but may have different SKUs at different retailers.
SKU Uses
- Inventory tracking and management
- Sales analysis by product
- Warehouse picking and storage
- Reorder point monitoring
- Supply chain visibility
- E-commerce catalog management
SKU Best Practices
- Keep codes consistent and logical
- Include meaningful information (category, size)
- Avoid special characters
- Make them scannable
- Plan for future growth
- Document your SKU structure
SKU Proliferation
Managing too many SKUs (SKU proliferation) can increase complexity and costs. Regular SKU rationalization helps maintain efficiency.