What Is a Stock Keeping Unit (SKU)?

If you’ve ever wondered how businesses keep track of their vast arrays of products efficiently, the answer lies in the acronym SKU, which stands for stock keeping unit. An SKU is a unique code assigned to each distinct product, acting as a digital fingerprint that simplifies inventory management. In this post, we will explore the definition of SKUs, their role in different industries, and how they contribute to the seamless functioning of supply chains.

The Basics of Stock Keeping Units (SKUs)

A stock keeping unit is a specific identifier given to a product within a company’s inventory. Think of it as a serial number for products, allowing businesses to differentiate between items, track them accurately, and manage their stock levels efficiently. SKUs are instrumental in various sectors, from retail and ecommerce to manufacturing and logistics.