The alphanumeric code could indicate an item’s color, style, size, brand, manufacturer, packaging or even price. SKUs are codes that businesses create out of letters and numbers that represents detailed information about a product, and they’re established by each business. Nearly any business that holds and sells inventory could benefit from a SKU system.SKUs play a key role in improving inventory tracking, financial analysis and the efficiency of business operations.SKU systems are typically used internally and can vary from one business to another, even if both are selling the same product.A Stock Keeping Unit (SKU) is a unique code assigned to a product by a business.However, you can learn from the best practices of industry leaders who have well-designed SKU systems that maximize efficiency and include all the key product data.Ī business often times refers to its sellable products as SKUs.
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Because businesses create their own individual SKUs, they are unique to each product and each company.īecause SKUs are an internal tool, there are no official rules on how to develop or use them. What Is a Stock Keeping Unit (SKU)?Ī stock keeping unit is a unique code companies use to track products internally. Here, we’ll discuss more details about what a SKU is, why a SKU system is important and how you can put it to work for your business. East, Nordics and Other Regions (opens in new tab)Ī SKU, or stock keeping unit, is a sequence of numbers and characters used as an internal tracking tool by businesses to track inventory.
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