Stock Keeping Units Are: Here Are The Definition, Function, And Benefits In Business

Stock keeping unit adalah (image Rawpixel)

YOGYAKARTA - In the business world, especially in inventory management and product management, the term stock keeping unit is very important. For companies that have many products with various variations, such as color, size, or model, stock keeping units is a tool that helps them in identifying, managing, and tracking product supplies. This article will discuss more deeply what unit stock keeping is, how it works, as well as the importance of using SKU in business.

Stock keeping unit is a unique code used to identify and track products or goods in the company's inventory. SKUs are usually a combination of numbers or letters that distinguish each item based on certain characteristics, such as size, color, type, or model.

With SKU, companies can organize their inventory more efficiently, ensuring that every product is easy to find and manage.

SKU is not only used for physical products, but also for digital services or products in several cases. For example, in the retail industry, a SKU can be used to distinguish between shoes measuring 38 and 39, or between red and blue shirts.

Stock Keeping Unit Functions And Benefits

The use of SKU in inventory management brings various benefits that can help companies manage their supplies more effectively. Here are some of the main functions of stock keeping units:

With SKU, companies can easily track every product in their stock. This makes it easier for warehouse staff to find out the location of the product, the number available, and when the product needs to be restocked. Without the SKU system, managing product inventory would be much more difficult and prone to errors.

Each product in the inventory is given a unique SKU code, so the possibility of confusion or wrong recording becomes smaller. This is very important in businesses that have many products with various variations. SKU allows companies to quickly and accurately check inventory, reducing the probability of errors in stock reporting.

SKU allows companies to better analyze sales and demand. By looking at data based on SKU, the company can find out which products are best-selling and which are less in demand. This helps the company in planning repurchase and managing sales more effectively. In addition, the company can identify products that need to be discounted or removed from inventory.

With a clear and systematic SKU, the company can quickly find products that customers are looking for, both in physical stores and online stores. This is very important in e-commerce, where the speed of identifying and transmitting ordered products can improve customer experience.

With the effective use of SKU, the company can more easily control the supply of goods. The SKU system can provide information about which products are too many, too few, or even products that have expired. Thus, the company can do better control to avoid overstock or stockouts that can affect sales.

How The Stock Keeping Unit Works

SKU works by connecting products with unique codes that distinguish one item from another. Usually, SKU consists of several parts that describe product characteristics. For example:

Each company can define their own SKU format, but it is important to ensure that the format is consistent and easily understood by all parties involved in inventory management.

Examples Of Using Stock Keeping Units

For example, an online retail store sells various types of bags. Each bag is given a different SKU based on brands, colors, and sizes. Using the SKU system, they can quickly identify which bags are sold well and which ones need to be pushed by promotions or discounts. In addition, when a customer orders a bag through an e-commerce platform, the delivery process will be much faster because each product already has a unique code that makes identification easier.

Difference Between SKU And Barcode

Although stock keeping units is a code used to track products, people are often confused between SKU and barcodes. Barcodes are images or symbols that contain information that can be scanned by barcode scanner devices to obtain data about products. On the other hand, SKU is a code that focuses more on internal inventory management and recording, while barcodes are used to facilitate transactions at cashiers or when scanning.

Stock keeping units is a very important element in the business world, especially in inventory management. Using SKU, companies can manage stock of goods efficiently, avoid errors in recording, and improve customer experience. SKU helps companies analyze sales, monitor inventory, and plan goods procurement strategies. For businesses that have many products, the use of well-structured SKU systems is the key to success in effective inventory management.

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