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What is the meaning of SKU?

SKU stands for "stock keeping unit." It is a unique alphanumeric code used to identify and track specific products in inventory. It helps businesses efficiently manage their stock and streamline their operations.

Why is SKU important?

SKU is important because it simplifies inventory management. By assigning a unique SKU to each product, businesses can easily track its stock levels, sales, and performance. This enables them to make data-driven decisions, optimize their stock, and prevent overstocking or understocking.

How is SKU different from a barcode?

While a barcode is a visual representation of a product"s SKU or other identifying information, SKU is a unique code specifically assigned to a product. A barcode is scannable and can be used for quick identification and tracking, while a SKU is a reference number used internally for inventory management.

How is SKU created?

SKU codes are created by businesses based on their own unique system. It can be as simple as using a combination of letters and numbers, or it can be more complex depending on the size and complexity of the inventory. The key is that each product should have a distinct SKU to avoid confusion and ensure accurate tracking.

What information does SKU contain?

SKU codes can contain various pieces of information depending on the business"s needs. Typically, it includes details such as product category, color, size, and other attributes that differentiate it from other products. This information allows for precise identification and categorization of products within the inventory system.

Can SKU be changed?

SKU can be changed, but it is generally not recommended. Once a product is assigned a SKU and entered into the inventory system, changing it can cause confusion and disrupt the tracking process. It is best to establish a clear and consistent SKU system from the beginning to avoid any issues in the future.

Conclusion

SKU is a vital tool in inventory management, allowing businesses to efficiently track and manage their products. It simplifies stock control, improves accuracy, and enables data-driven decision-making. By utilizing SKU codes, businesses can streamline their operations and optimize their inventory for better productivity and profitability.