top of page

SKU and its use in various industries


SKU, or Stock Keeping Unit, is a unique identifier assigned to each product in inventory, enabling its tracking and management. This is a key component in logistics and supply chain management as it allows for the precise monitoring of inventory levels, product flow, and availability. In this article, we will explore what SKU is exactly, its application across different industries, and how it aids in logistical management, providing specific examples along the way.

What is SKU?

SKU is an alphanumeric code that uniquely identifies each product. It can contain information about the product type, size, color, manufacturer, etc., facilitating inventory management. Thanks to SKUs, warehouse staff, salespeople, and management systems can quickly and accurately identify products without needing to refer to long and complex descriptions.

Using of SKU in Various Industries

Retail: In retail, both brick-and-mortar and online, SKUs are essential for inventory management, enabling quick responses to changing trends and customer preferences. For example, a clothing store might use SKUs to track the sales of individual sizes and colors, allowing for optimized ordering and avoiding stock shortages or excess.

E-commerce: In the e-commerce sector, SKUs facilitate the automation of logistical processes such as order taking, picking, and shipping. With e-commerce systems integrated with Warehouse Management Systems (WMS), it's possible to automatically update inventory levels and inform customers about product availability in real-time.

Manufacturing: In the manufacturing sector, SKUs simplify tracking components and finished products throughout the supply chain, from suppliers to end customers. This enables efficient production management, waste minimization, and inventory optimization.

Pharmacy: In the pharmaceutical industry, where errors in product management can have serious consequences, SKUs are used to precisely track drug batches, their expiration dates, and origins. This supports regulatory compliance and ensures patient safety.

How SKU Helps in Logistics Management?

Inventory Optimization: By accurately monitoring the turnover of individual products, SKUs allow for efficient inventory management, reducing storage costs and minimizing the risk of product obsolescence.

Streamlining Warehouse Processes: SKUs enable the automation of various warehouse processes, such as receiving deliveries, order picking, or returns, which translates into faster customer service and error reduction.

Improved Customer Service: Precise information about product availability and faster order fulfillment, made possible by effective SKU use, significantly affects customer satisfaction and brand loyalty.

Sales Analysis and Forecasting: SKUs allow for detailed sales analysis, identifying top-selling products and market trends, which is key for effective demand forecasting and assortment optimization.

In summary, SKU is an indispensable tool in modern logistical management, significantly contributing to operational efficiency and improved customer service across various industries. Its application enables precise product tracking and management, which is crucial for market success.

1 view0 comments


Sign up for updates

Thank you for subscribing!

Chcesz dowiedzieć się więcej o naszych usługach? 

Wyślij nam maila, a my odpowiemy na każde Twoje pytanie! 

Bądź z nami na bieżąco, zaobserwuj nas!

  • Facebook
  • LinkedIn
bottom of page