SKU#
Stock-Keeping Unit — a unique identifier for a distinct product.
Important
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What it is#
A stock keeping unit (SKU) is a unique alphanumeric code a business assigns internally to each
distinct product or variant, so it can be tracked through inventory. It is a fingerprint for an item —
no two distinct products share one — and it encodes key attributes (category, brand, color, size), as
in WREN-101-RED-SM (brand WREN, category 101, red, small).
SKU vs UPC#
A SKU is internal and custom to each company — you design the format — whereas a UPC is a universal, standardized barcode shared across all retailers. The same physical product can carry different SKUs at different companies.
Why it matters#
The SKU is the atom of inventory operations — every movement (sold, received, returned, written off) references it. It drives stock monitoring, reorder triggers, warehouse location and picking, ABC classification, and per-product sales analytics that feed demand forecasting.
Theme: Operations & Supply Chain · All terminology
Hint
Mind map — connected ideas
Slow-Moving SKUs · Real-Time Inventory Tracking · Demand Forecasting · Reorder Point (ROP) Optimization · Safety Stock · Stockout Rate
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More in Operations & Supply Chain
Backorder Rate · Crew Overtime · Demand Forecasting · Fill Rate · Long Lead Times · Long-Tail Items · Lost Sales Value · Overstock % · Real-Time Inventory Tracking · Reorder Point (ROP) Optimization · Safety Stock · Slow-Moving SKUs · Stockout Rate · Stockouts
See also
Source article Adapted (context, re-expressed) in our own words from: SKU (insightful-data-lab.com).