What is a Stock Keeping Unit (SKU)?

A Stock Keeping Unit (SKU) is a unique identifier assigned to a product or item in inventory management. It helps businesses track and manage their stock efficiently by providing detailed information about each product, such as its size, color, and other attributes.

Stock Keeping Unit (SKU)

Sophia Reynolds

28 May 2025 — 2 min read

Stock Keeping Unit (SKU) is a unique identifier assigned to a specific product or item for the purpose of inventory tracking and management. Each SKU represents a distinct item, including its size, color, model, or configuration, and is used to streamline warehousing, procurement, and sales operations.

SKUs help procurement and inventory teams monitor stock levels, reorder products, prevent overstocking, and analyze product performance. They are typically used in ERP or warehouse management systems to enable efficient product identification and movement.

Unlike barcodes, which may be standardized, SKUs are created internally and customized to suit a company’s cataloging needs.

✅ Common usage: “The procurement team reviewed SKU-level data to identify slow-moving inventory and optimize reorder quantities.”

❓ Frequently Asked Questions

Why are SKUs important in procurement?

SKUs are crucial in procurement because they enable accurate tracking of inventory levels, streamline the ordering process, and help prevent stockouts or overstock situations. They also facilitate better communication between suppliers and buyers by providing a standardized reference for each product.

How is an SKU different from a barcode?

An SKU is a unique alphanumeric code used internally by a company to identify and manage products, while a barcode is a machine-readable representation of data that can be scanned to retrieve information about a product. Barcodes often include SKU information but are used for different purposes, such as point-of-sale transactions.

Can SKUs be reused for different products?

It is generally not recommended to reuse SKUs for different products, as this can lead to confusion and errors in inventory management. Each SKU should be unique to a specific product to ensure accurate tracking and reporting.

How are SKUs created?

SKUs are typically created by combining various attributes of a product, such as its category, size, color, and model number. The format and structure of an SKU can vary depending on the company's inventory management system and specific needs.

What role do SKUs play in supply chain management?

In supply chain management, SKUs help streamline operations by providing a consistent and efficient way to track products throughout the supply chain. They facilitate better inventory control, improve order accuracy, and enhance overall supply chain visibility.

How can SKUs improve inventory accuracy?

SKUs improve inventory accuracy by providing a detailed and organized system for tracking products. This reduces the likelihood of errors in inventory counts, helps identify discrepancies quickly, and ensures that stock levels are accurately maintained.

Are SKUs the same across different companies?

No, SKUs are not standardized across different companies. Each company creates its own SKU system based on its specific inventory management needs and product attributes. As a result, the same product may have different SKUs in different companies.

Metodología BPM

Metodología BPM se refiere al enfoque estructurado utilizado para diseñar, modelar, analizar y mejorar los procesos de negocio dentro de una organización. Incluye mejores prácticas, herramientas, técnicas y marcos que guían a las organizaciones en sus esfuerzos de gestión de procesos, ayudándolas a lograr una mayor eficiencia y alineación con

Metodologia BPM

Metodologia BPM refere-se à abordagem estruturada utilizada para projetar, modelar, analisar e melhorar processos de negócio dentro de uma organização. Inclui melhores práticas, ferramentas, técnicas e estruturas que orientam as organizações em seus esforços de gestão de processos, ajudando-as a alcançar maior eficiência e alinhamento com os objetivos de negócio.

BPM Methodology

BPM Methodology refers to the structured approach used to design, model, analyze, and improve business processes within an organization. It includes best practices, tools, techniques, and frameworks that guide organizations in their process management efforts, helping them achieve greater efficiency and alignment with business objectives. The BPM methodology ensures that

Méthodologie BPM

Méthodologie BPM fait référence à l'approche structurée utilisée pour concevoir, modéliser, analyser et améliorer les processus métier au sein d'une organisation. Elle inclut les meilleures pratiques, outils, techniques et cadres qui guident les organisations dans leurs efforts de gestion des processus, les aidant à atteindre une