Stock Keeping Unit (SKU)
Candlefocus EditorSKUs are often seen in the form of a barcode or a QR code, which can be simply scanned in and out of a system. Not to be confused with UPC barcodes, which are used to classify different types of items, a SKU’s purpose is to identify individual items. For example, a store may have two blue polo shirts - one with a SKU of #12345 and the other with a SKU of #54321. That way, the store always knows what is coming in and out of the inventory.
Knowing the difference between a SKU and a UPC is important because having a SKU for every item that enters the inventory helps to make sure the accuracy of the inventory is always up-to-date. Knowing the exact number of products helps vendors know what needs to be reordered to avoid stock-outs. Automated SKU systems can also provide vendors with valuable sales data, as well as help to monitor demand for certain products.
Furthermore, SKUs can also be used for other services, such as maintenance and repairs. When working with a product’s warranty, vendors can use SKU codes to track its service history, such as any repairs or parts that were replaced. SKUs can also be used to account for the amount of time a service login has taken, indicating to the vendor the amount of money due.
Overall, a Stock-Keeping Unit is a powerful tool for any vendor, opening up a wide range of inventory management capabilities, from tracking products to monitoring demand and logging repair time. Although SKUs are not to be confused with UPC codes, both are important for effective inventory control. As such, vendors should always ensure that every item entering their inventory has a unique SKU registered, in order to maximize their business’s inventory efficiency.