SKU: Everything you need to know about this essential code for inventory management

The SKU (Stock Keeping Unit), or SKU (Stock Management Unit), is a key element in the management of stocks and products for any business, whether e-commerce, distribution or manufacturing.

This unique code makes it possible to precisely identify each item in an inventory.

But how does a SKU work, how do you create one, and why is it so important?

This article offers you a complete guide to the SKU, its usefulness and how to optimize its use in managing product information.

Do you want to effectively manage your product information with an all-in-one solution? Discover NuDE The Product Information Management (PIM) solution from SolidPepper.

What is a SKU?

Definition

An SKU is a unique code assigned to each product to identify, track and manage inventory. This code is generally composed of a combination of letters and numbers that make it possible to distinguish one product from another, even if they are very similar.

For example, two variants of the same product (different sizes or colors) will each have their own SKU.

Contrary to bar codes, which are generally universal and created by external organizations, SKUs are created internally by companies, according to their needs and management method. This gives them great flexibility to structure and monitor their products.

Difference between SKU, bar code, and EAN number

Although the SKU, bar code, and EAN (European Article Number) are all used to identify products, they do not perform the same functions.

• SKU : created internally by the company for specific stock management.

• Barcode : used to quickly scan products at the checkout or in a warehouse, often linked to the EAN.

• EAN : a standardized code used internationally to identify products, often printed as a bar code.

The advantage of the SKU is that it is more flexible and can be adapted to the specific needs of the company, while the EAN is imposed by international standards.

Why is the SKU important for inventory management?

Using SKUs in inventory management has several major advantages:

1. Precise product identification

Each SKU makes it possible to quickly identify a specific product among hundreds or even thousands of items. This reduces inventory management errors and allows for better product organization.

2. Facilitates inventory tracking

With a unique SKU for each product, it becomes much easier to track inventory levels, analyze sales, and forecast demand. Businesses can thus avoid out of stock Or the surplus.

3. Optimization of logistics processes

SKUs facilitate logistics operations, whether for managing inventory in a warehouse,shipping orders Or the returns processing. Operators can quickly identify the right product to prepare or return.

4. Integration with PIM, MDM, and ERP systems

The SKU plays a central role in integration with other management systems such as PIM (Product Information Management), MDM (Master Data Management)), or ERP (Enterprise Resource Planning).

For example, in a PIM like NuDE by SolidPepper, the SKU is essential to centralize all product information and ensure its consistency across all channels.

How do I create an effective SKU?

Creating a SKU should be thoughtful so that it is easy to use, understand, and maintain.

Here are some best practices to follow:

1. Structure simply and consistently

A good SKU should be easy to read and understand.

Use a combination of letters and numbers that makes sense for your business.

For example, you can include letters to identify the product category, followed by numbers to distinguish variations such as size or color.

Example: TSHRT-BLK-M could be the SKU for a black T-shirt in size M.

2. Limit the length

Avoid creating SKUs that are too long. A SKU should be short but descriptive enough to provide essential information.

Between 8 and 12 characters is generally a good compromise.

3. Avoid special symbols

The use of special symbols (like @, #, &, etc.) in SKUs can create integration problems with some management software.

Instead, use letters and numbers only.

4. Include relevant information

Your SKU may include important information such as product category, color, size, or other variations.

This can simplify identification and management.

Example of managing SKUs in a PIM system

SKUs play an essential role in a PIM system like NuDE by SolidPepper.

The PIM centralizes all product information, including descriptions, images, prices, and logistics data.

Thanks to SKUs, it is possible to organize and update this information effectively on all sales channels (website, marketplaces, printed catalogs).

With NuDE, SKUs are used to synchronize all data and ensure that there is no confusion between different variants of a product.

This is particularly useful in sectors with hundreds of references or products available in several versions.

Conclusion

The SKU is much more than just an internal code; it is essential for effective inventory management, the fluidity of logistics operations and the coordination between different systems (PIM, ERP, etc.).

By using a well-structured SKU and integrating this data into a centralized system like SolidPepper's NuDE, businesses can improve efficiency, reduce errors, and provide a better customer experience.

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FAQS

What is a SKU?

The SKU (Stock Keeping Unit) is a unique code assigned to each product to facilitate stock management and logistics.

What is the difference between a SKU and a bar code?

The SKU is an internal code used by businesses to manage their products, while the barcode is generally linked to the EAN for the international identification of items.

How do I create a SKU?

A SKU should be short, descriptive, and structured to include key information such as product category, size, or color.

Why use a PIM with SKUs?

PIM centralizes product information, and SKUs allow this data to be efficiently synchronized across all sales channels.

What tools can help manage SKUs?

Systems like SolidPepper's NuDE, as well as ERPs and stock management tools, allow for the smooth management of SKUs and all product information.