In logistics, “Stock Keeping Unit (SKU)” is a special code given to each product in a company’s inventory. Here are some simple points to understand about SKUs.
- An SKU is a mix of letters and numbers that uniquely identifies a product. This code helps track and manage inventory, orders, and sales.
- Each SKU is unique to a specific item, considering attributes like size, color, model, and other variation. For example, a medium blue T-shirt will have a different SKU than a large blue T-shirt.
- SKUs are essential for keeping track of stock levels accurately. They help businesses know when to reorder products and prevent running out of stock or having too much.
- Using SKUs makes logistics operations smoother as it helps quickly find and retrieve items in warehouses, process orders faster, and handle returns efficiently.
- SKUs allow businesses to analyze sales trends, monitor product performance, and make informed decisions about inventory, marketing, and buying.
- SKUs help coordinate activities in different stages of logistics, like warehousing, transportation, and distribution, ensuring that the right products reach the right places at the right times.
In summary, an SKU is a vital part of logistics and supply chain management. It provides a standard way to identify, track, and manage products throughout their journey.
