Stock Keeping Unit (SKU)

A unique identifier for each distinct product and service that can be purchased in business.

What is a Stock Keeping Unit (SKU)?

A Stock Keeping Unit (SKU) is a unique code assigned to each distinct product within a company's inventory. SKUs help businesses track and manage their inventory efficiently by providing a way to identify and differentiate between various products. SKUs typically consist of a combination of numbers and letters that relate to specific attributes of a product, such as size, color, style, or manufacturer. By using SKUs, businesses can easily monitor stock levels, facilitate accurate order fulfillment, and analyze sales data. These codes also enable retailers to quickly locate and organize products within their warehouses, making inventory management and replenishment more streamlined. Additionally, SKUs play a crucial role in pricing strategies, as they assist in setting prices based on factors like product variants and demand. Overall, the implementation of SKUs is crucial for businesses looking to maintain a well-organized and efficient inventory system, ultimately contributing to smoother operations and improved customer satisfaction.