Stock keeping unit (SKU)
A stock keeping unit (SKU) is a unique identifier assigned to a specific product or item in inventory management.
What is SKU?
"SKU" is an abbreviation for "Stock Keeping Unit." It is a distinctive identifier or code given to a particular product or item in a company's inventory management system. SKUs are used to track and manage individual items separately, allowing businesses to have better control over their inventory.
Why is SKU important?
• SKUs help businesses track stock levels, fulfill orders correctly, and optimize inventory replenishment.
• They facilitate sales analysis, allowing businesses to identify top-selling products and make informed pricing, marketing, and inventory optimization decisions.
• SKUs contribute to demand forecasting by tracking sales patterns and helping businesses predict future demand more accurately.
• They aid in product differentiation, making it easier for customers to find and purchase desired items.
• SKUs streamline supply chain management by providing a standardized reference for products throughout the supply chain.
• They play a crucial role in pricing strategies and promotions, allowing businesses to assign specific prices to SKUs and measure the impact of promotional activities.