Pronunciation: [skˈuː] (IPA) 
SKU (pronounced /ˌɛs.kjuːˈeɪ/) is an acronym for Stock Keeping Unit which is used to identify and track inventory in a retail or warehouse setting. The word is spelled with the letters S, K, and U, and is pronounced by sounding out each letter individually, followed by the sound of the letter A. It is important for retailers to properly label and organize their inventory using SKUs to ensure efficient tracking and management of their products.
SKU stands for "Stock Keeping Unit". It is a unique alphanumeric code or number assigned to a specific product or item within a company's inventory management system. The purpose of an SKU is to distinguish between, identify, and accurately track individual products and their variants or variations.
The SKU serves as a vital component in inventory control and management, allowing businesses to easily monitor and organize their products. The code typically contains a combination of letters, numbers, or both, which often correspond to specific characteristics of the product, such as size, color, or style. This enables businesses to differentiate between similar products and accurately record their stock levels and movements.
The SKU is utilized throughout various stages of the supply chain, from procurement and receiving to storage, sales, and order fulfillment. It enables businesses to efficiently manage and analyze inventory data, such as stock replenishment, sales performance, and profitability. Additionally, SKUs assist in maintaining accurate stock counts, preventing stockouts or excess inventory levels.
The use of SKUs facilitates efficient inventory management, enhances accuracy in order fulfillment, and aids in improving overall operational efficiency. Retailers and e-commerce platforms rely heavily on SKUs to streamline their inventory processes and ensure smooth operations. Furthermore, SKUs are instrumental in creating effective demand forecasting, optimizing stock levels, and tracking product performance in the market.
