Stock Keeping Unit
A stock-keeping unit (SKU) is a scannable bar code, most often seen printed on product labels in a retail store. The label allows vendors to automatically track the movement of inventory. The SKU is composed of an alphanumeric combination of eight-or-so characters. The characters make up a code that tracks the price, product details, manufacturer, and point-of-sale.SKUs may also be applied to intangible but billable products, such as units of repair time in an auto body shop or for warranties.
Stock Keeping Unit (SKU)
Definition
A Stock Keeping Unit (SKU) is a scannable barcode, typically printed on product labels in retail stores. This label allows suppliers to automatically track the movement of inventory. An SKU consists of an alphanumeric combination of eight or more characters. These characters form a code that can track price, product details, manufacturer, and point of sale. SKUs can also be applied to intangible but billable products, such as repair time units in an auto repair shop or warranty periods.
Origin
The concept of SKU originated in the mid-20th century as retail and supply chain management became more complex. Businesses needed an efficient way to manage and track inventory. The development of barcode technology made SKUs possible, and they became widely used in the retail industry in the 1970s.
Categories and Characteristics
SKUs can be categorized based on different criteria:
- Product Type: Different types of products have different SKUs, such as electronics, clothing, food, etc.
- Supplier: Products from different suppliers have different SKUs for differentiation and management.
- Sales Channel: Products sold online and offline may have different SKUs for separate inventory management.
The main characteristics of SKUs include:
- Uniqueness: Each SKU is unique, ensuring that each product can be accurately identified and tracked.
- Traceability: Through SKUs, businesses can track information such as product price, inventory quantity, and sales status.
- Flexibility: SKUs can be applied to various types of products, including tangible goods and intangible services.
Specific Cases
Case 1: Retail Store
A large retail store uses SKUs to manage its vast inventory of goods. Each product has a unique SKU that includes information such as price, manufacturer, and inventory quantity. When a product is sold, the SKU is scanned, and the system automatically updates the inventory quantity and generates sales reports.
Case 2: Auto Repair Shop
An auto repair shop uses SKUs to manage its service items. For example, oil change services and tire replacements each have a unique SKU. Through SKUs, the repair shop can track the cost, time, and customer information for each service.
Common Questions
Question 1: What is the difference between an SKU and a barcode?
An SKU is a code used to identify and manage inventory, while a barcode is a technology used to scan and read SKUs. A barcode can contain SKU information, but an SKU itself is not limited to barcode form.
Question 2: How to create an effective SKU?
When creating an SKU, ensure its uniqueness and readability. Typically, an SKU should include key features of the product, such as category, brand, and model, for easy identification and management.
