What is an SKU?
An SKU (Stock Keeping Unit) is a system for uniquely identifying applied to products in order to track inventory. It stands for Stock Keeping Unit and is a unique code that is assigned to each product in a company’s inventory. It is expected to identify a product or service in any given time and place.
What is a SKU Used For?
SKUs are used to track a company’s inventory and sales. By creating each SKU in advance of the sale for each item within a company’s inventory, each item is easily identifiable and traceable when the sale is made. The SKU also helps the company to easily track and update inventory.
How Can Small Businesses Use SKUs?
Small businesses can benefit from creating SKUs for their products and services. A few of the ways they can use SKUs include:
- Inventory Management: SKUs allow small businesses to easily track and maintain inventory levels.
- Sales Planning: SKUs make it easier to plan for future sales by providing insights into demand and sales trends.
- Improved Barcoding: SKUs can make it easier to track products using barcode systems.
- Reduced Shipping Costs: By allowing for more efficient order picking, SKUs can reduce shipping costs.
- Accurate Pricing Calculations: SKUs allow small businesses to easily calculate pricing based on accurate inventory counts.
Creating SKUs for each product or service can help small businesses stay organized, improve efficiency, and track inventory with precision. SKUs can help small businesses gain a better understanding of customer demand and sales trends.