Stock Keeping Unit
SKU stands for Stock Keeping Unit. It is a unique code used to identify and track products in the warehouse. SKUs are used by companies to keep track of inventory, manage orders, and improve logistics processes.
What is a SKU used for?
SKUs help companies organize their warehouse by assigning each product a unique code. This code often contains information about the product's specifications, which can include:
- Manufacturer
- Product category
- Size
- Color
- Variations
When a company uses SKUs effectively, they can quickly locate and identify a product, saving time and minimizing errors in inventory management.
Why are SKUs important?
SKUs make it easier to manage inventory because they:
- Improve inventory management: Companies can quickly locate specific products, keep track of stock, and reorder items when needed.
- Help with sales analyses: By using SKUs, companies can see which products sell best and adjust their stock accordingly.
- Streamlines customer service: When customers have questions about specific products, the SKU can help locate the exact item quickly.
SKUs are widely used in both e-commerce and brick-and-mortar stores to ensure efficient inventory management and easy access to product information.