Stock Keeping Unit (SKU)

What is Stock Keeping Unit (SKU)? A unique identifier assigned to each distinct product and item in a company's inventory.

Explanation: A Stock Keeping Unit (SKU) is a unique identifier assigned to a product by a retailer to distinguish it from other products. It is used to manage and track inventory. SKUs can include a combination of letters and numbers, and they often contain information about various attributes of the product, such as:

·        Category: The type of product (e.g., electronics, clothing).

·        Brand: The manufacturer or brand of the product.

·        Model: The specific model or variation of the product.

·        Size: The size of the product if applicable (e.g., small, medium, large).

·        Color: The color of the product.

·        Other Features: Any other distinguishing features, such as style, material, or special editions.

SKUs are crucial for inventory management, allowing businesses to track the quantity of each product they have in stock, manage reordering, and analyze sales patterns. They help streamline operations, reduce errors in inventory management, and enhance the efficiency of supply chain processes.