An SKU (Stock Keeping Unit) is a unique identifier used by retailers and manufacturers to track and manage inventory. Each SKU represents a specific product and helps differentiate between similar items. The SKU system includes various attributes that define a product, such as type, size, color, brand, material, and packaging.

Components of an SKU:

The structure of an SKU can vary, but it typically combines letters and numbers. The composition can be customized by each company to suit their inventory needs. Here are some common elements that might be included in an SKU:

Product Category: e.g., shelving, racks, Warehouse Racking System, etc.
Size: such as height, width, depth, etc.
Color: e.g., black, white, gray.
Material: such as metal, wood, plastic.
Features: e.g., adjustable, waterproof, or other product-specific features.
Other Identifiers: such as batch number, manufacturing date, etc.

Uses of SKUs:

Inventory Management: SKUs allow businesses to track inventory in real-time, ensuring stock levels meet demand and preventing stockouts or overstocking.
Sales Analytics: SKUs help businesses monitor the sales of specific products, enabling better forecasting, pricing, and purchasing strategies.
Order Processing: SKUs make it easier to process customer orders, ensuring accurate and efficient shipping of the correct products.
Supply Chain Optimization: By tracking SKUs, businesses can streamline their supply chain processes, from procurement to delivery.
Stocktaking: SKUs allow businesses to conduct accurate inventory counts, ensuring the reliability of their stock records.

Example:

Suppose you’re running a warehouse shelving business. You might use SKUs like these:

SH-5B-120: A 5-tier black shelving unit, 120 cm high.
SH-3W-150: A 3-tier white shelving unit, 150 cm high.
Each SKU distinctly identifies a specific product, which is valuable for managing inventory, sales data, and supply chain logistics. A well-implemented Warehouse Racking System helps keep these SKUs organized, maximizing the storage efficiency of your warehouse while improving the ease of product retrieval and order fulfillment.