Introduction
Stock Keeping Unit, also commonly known as SKU, is a similar term for businesses but is often misunderstood outside the trade and logistics industries. It is a unique code that basically serves to identify the products, thereby facilitating its tracking and management. If you want to optimize the operation of your business then it is very important that you have complete knowledge of the stock keeping unit. In this article, we will make you aware of what Stock Keeping Unit is, what are its uses and how you can create sku with automated software.
What is Stock Keeping Unit (SKU)?
Stock Keeping Unit is a scannable alphanumeric code, we mainly use it to identify a specific product as an inventory control measure. Stock keeping unit codes are usually printed at the product level and represent various product characteristics such as colour, size, brand. They are very helpful in tracking inventory in traditional retail stores, warehouses and online retailers. A combination of numbers and letters basically forms the SKU number. Usually the SKU number consists of 12 letters and numbers and each letter has a meaning.
Uses of Stock Keeping Unit:
- Inventory Track: It helps users to track inventory. It also allows determining the availability and total quantity of a certain product. This basically saves consumers time and also avoids stockouts as they are able to immediately identify the items that need to be restocked.
- Identifying Shrinkage: You can also use this primarily to identify shrinkage, which is the total number of missing products that a firm is basically unable to sell.
- Useful in replenishing inventory levels: Stock keeping units are primarily used to replenish inventory levels, which means setting reorder points for each order and basically eliminating the possibility of stock out.
- Identifying high profitable products: This is mainly used to track the products which are not performing well. This makes it easier for shoppers to know which items are performing poorly and pay less attention to them.
Generate Your SKUs Now!
Click the button below to access our free stock keeping unit (SKU) generator:
Generate SKUsHow to generate SKUs using our free SKU generator tool?
Using our free SKU generator tool is very easy, you can create SKUs for your products in just 3 steps.
Step 1: Enter the character count and separator.
- Enter a number in the character count field. This determines how many characters from each attribute will be included in the SKU.
- Enter your preferred separator character. The character you enter will be used to separate different attributes within the SKU code.
Step 2: Enter item information.
- Enter the name of the product for which you want to create the SKU code in the "Item Name" field.
- Enter the attributes in the attribute fields that you want to show in the SKU code.
For example:
Attribute 1: Size (S, M, L)
Attribute 2: Color (Red, Blue, and Green)
Attribute 3: Material (Cotton, Polyester)
Step 3: Generate SKUs.
- After completing the above 2 steps, click on the add button on the left side, and the tool will generate a list of SKUs based on the information you provided.
- In case you want to generate multiple SKUs with a few variations, click the "Add & Retain" button. This will retain the entered information for your next SKU generation, and next time you can change the particular information and create multiple versions.
Importance Of Stock Keeping Unit (SKU):
Following are some of the importance of Stock Keeping Unit:
- Enhanced Shopping Experience: Stock Keeping Units prove to be very helpful for consumers to compare similar products based on features like price, quantity, quality, material etc. The stock keeping unit basically helps you in identifying the product and also collects data during sales.
- Data Interpretation: Stock Keeping Units radically simplify inventory keeping, making it easier for consumers to determine the quantity of particular products at any given time. It basically serves to allow traders to collect data to assess the importance of production or to identify their periodic trends. This data enables them to maintain inventory in line with consumer behavior trends.
- Providing support to customers: When any customer requests a product variant, the staff can quickly scan the stock keeping unit to find out whether the product is in stock or not. This significantly improves sales performance. greatly improving sales performance.
- Inventory Management: Inventory management is the primary objective of a stock keeping unit system. With a single stock keeping unit, retailers can handle both transportation and stock storage. They can basically use sales data to specify the time frame at the inventory level, which is very helpful when reordering inventory.
Conclusion
Stock keeping units play a very important role in management as they essentially enable businesses to track, manage and analyze their products efficiently. Retailers can seamlessly use a unique identifier to optimize their inventory control, order fulfillment and customer support processes. Barcodes provide a standardized method for identifying and tracking products throughout the supply chain.