What Is An SKU

 An SKU (Stock Keeping Unit) is a distinct code used by retailers and manufacturers to identify and manage inventory. Each SKU represents a unique product, helping businesses differentiate between similar items. The SKU system includes key product details such as type, size, color, material, brand, and packaging, which help streamline inventory processes.

Components of an SKU

The format of an SKU may differ depending on the business, but it typically combines letters and numbers. Companies can customize the structure to meet their specific needs. Here are some common components that make up an SKU:

  • Product Category: e.g., shelving, racks, Warehouse Racking System.
  • Size: dimensions like height, width, depth.
  • Color: e.g., black, white, gray.
  • Material: e.g., metal, wood, plastic.
  • Features: specific attributes like adjustable, waterproof, etc.
  • Additional Identifiers: e.g., batch number, manufacturing date.

Benefits of SKUs

  • Inventory Management: SKUs help businesses track stock in real-time, preventing stockouts and overstocking by keeping inventory levels aligned with demand.
  • Sales Analysis: By monitoring SKU-specific sales data, businesses can improve forecasting, pricing, and purchasing strategies.
  • Order Fulfillment: SKUs simplify order processing, ensuring that the correct products are shipped to customers quickly and accurately.
  • Supply Chain Efficiency: Tracking SKUs optimizes the entire supply chain, from procurement to delivery, making operations more efficient.
  • Stocktaking: SKUs enable businesses to conduct accurate inventory counts, ensuring that stock records are up-to-date and reliable.

Example

Imagine you're managing a warehouse shelving business. Here’s how SKUs might be used:

  • SH-5B-120: A 5-tier black shelving unit, 120 cm high.
  • SH-3W-150: A 3-tier white shelving unit, 150 cm high.

Each SKU is a unique identifier for a product, making it easier to track inventory, analyze sales, and optimize logistics. By organizing SKUs effectively within a Warehouse Racking System, businesses can maximize storage efficiency and simplify product retrieval and order fulfillment.


Further Reading:

BEWARE OF SENSORINEURAL HEARING LOSS AND HOW TO SPOT THEM

SUMMARY OF COMMON AUDIOLOGY TERMS EXPLAINED

THE WAY TO UNBLOCK THE EARS

THE EXPERIENCE OF WEARING A HEARING AID FOR THE FIRST TIME

WHAT ARE THE FUNCTIONS OF HEARING AIDS?

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