Stock Keeping Unit (SKU)

Definition of Stock Keeping Unit (SKU)

A Stock Keeping Unit (SKU) is a unique alphanumeric code that allows retailers and vendors to automatically track the inventory of products in their store. Usually consisting of eight alphanumeric digits, SKUs are most often paired with a bar code or QR code that provides vital information about the product, including its price, details, manufacturer, and point of sale. Each SKU is distinctive for every product sold by a retailer, assisting in efficient inventory management and sales analysis.

SKU vs UPC

Related Terms

• Inventory Management: The process of ordering, storing, and using a company’s inventory.
• Bar Code: A method of representing data visually, in a form that can be scanned and interpreted by machines.
• QR Code: A type of matrix barcode that can encode a variety of data types.

Examples

• An electronic store might have the SKU TV-55LED-1234 for a 55-inch LED television that specifies its unique features and price.
• A restaurant can use SKUs for each menu item; for example, BK-1001 for the Big King burger to keep track of sales data.

Visual Representation

    graph TD;
	    A[Inventory Management] --> B[Keep track of items];
	    A --> C[Apply unique codes];
	    C --> D[SKU];
	    C --> E[UPC];
	    D --> F[Store data];
	    F --> G[Sales Analysis];
	    F --> H[Reordering products];

Fun Facts and Quotes

• Fun Fact: Did you know that the first bar code scanned in 1974 was a pack of Wrigley’s gum? Think of all the gumballs that have passed through checkout since then!
• Funny Quote: “I told my friend I was putting bar codes on my inventory. He asked, ‘Why? Are you going to scan them for a reality check?’”

Frequently Asked Questions (FAQs)

1. What does SKU stand for?

   • SKU stands for Stock Keeping Unit. It’s a way to keep track of products in a warehouse or store.

2. Why are SKUs important?

   • SKUs help retailers manage inventory efficiently, analyze sales data, and reduce stockouts.

3. Can one product have multiple SKUs?

   • Absolutely! A single product can be assigned different SKUs in different stores to cater to diverse inventory needs.

4. How do SKUs differ from UPCs?

   • SKUs are retailer-specific and can be customized, while UPCs are universal and standardized identifiers for retail items.

5. Do online businesses use SKUs?

   • Yes, online retailers use SKUs to streamline their inventory management and order fulfillment processes.

References to Online Resources

• Wikipedia: Stock Keeping Unit
• Investopedia: Understanding Inventory Management

Suggested Books for Further Study

• “Inventory Management Explained” by Gwynne Richards: A comprehensive guide on managing your retail inventory efficiently.
• “The New Warehouse Management Handbook” by Gwynne Richards: A deeper dive into warehousing strategies, including SKU management.

Test Your Knowledge: Stock Keeping Unit (SKU) Quiz

Thank you for diving into the whimsical world of Stock Keeping Units (SKUs)! Keep tracking, and remember: an organized inventory leads to less chaos and more cha-ching!