what are skus

A stock keeping unit (SKU) is a unique identifier or code used in inventory management to track and manage the stocks of a material. It is usually an alphanumeric combination of eight or so characters that can be represented via a barcode for scanning and tracking. SKUs can be assigned by vendors or created by the company receiving the items. SKUs are not regulated or standardized, unlike Global Trade Item Numbers (GTIN) . SKUs are important because they help retailers accurately track their inventory, prevent phantom inventory, and pinpoint when to order new products so that merchandise never goes out of stock. SKUs provide information about the characteristics of a product, such as its color, style, brand, type, size, price, and more. Retailers use SKUs to track whats selling, which helps them know when to restock from vendors. SKUs also allow retailers to track their inventory down to the individual item, providing a clear and consistent internal organization system so business owners know exactly what they have in stock. SKUs make it much easier to determine what is in stock and when products need to be reordered, especially if there are supply-chain disruptions.