DID YOU KNOW? STOCK KEEPING UNITS

Stock keeping units (SKUs) are unique identifiers for each product item and are used to manage inventory. They are often eight alpha-numeric digits but could conceivably comprise any unique code system.

Each retailer will assign unique SKUs to products within their inventory management system. The SKUs are assigned based on product attributes such as manufacturer, description, size, colour and packaging. Inventory systems and stock takes are done based on units of each SKU.

Some product manufacturers may assign a unique product code (UPC) to their products. UPC codes will be standardised across retailers and could possibly be assigned as the SKU for that product by retailers.

SKUs and UPCs can be incorporated into scannable bar codes affixed to products. When incorporated into point-of-sales systems, scannable SKUs become critical for inventory management and restocking.