SKU (Stock Keeping Unit)
A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned to a specific product or item in inventory. It reflects key attributes such as size, color, packaging or brand, allowing businesses to distinguish one item from another. For example, a red t-shirt in size medium from a particular brand would have a distinct SKU from the same t-shirt in blue or a different size.
SKUs are used internally for tracking stock levels, managing orders and streamlining warehouse operations. They help ensure that the right product is stored, picked and delivered accurately. In a supply chain context, SKUs support precise inventory control and efficient fulfillment, both of which are essential for meeting customer demand and reducing errors.
