SKU Full Form
What is the full form of SKU?
SKU, or stock-keeping unit, is a code number given to a single inventory item and is often used as a machine-readable bar code. The SKU is the smallest product unit that can be purchased, sold from inventory, or added to inventory as part of an inventory control system. The SKU can be used in production, wholesale, or retail settings to track customer spending patterns, manage inventory, control purchasing, and monitor transactions.
- What is the full form of SKU?
- Management of SKU
- SKUs vs UPC codes
- Barcode vs SKU
- SKU Importance
Management of SKU
The administration of SKUs is crucial if we plan to use them. SKU management allows us to assess the cost of carrying each product, guaranteeing that every piece of inventory satisfies the company's financial objectives. When implemented properly, SKU management enables us to maximize our inventory levels and transactions (and increase revenue). If done incorrectly, we will have large expenditures for maintaining inventories and less accessible money.
SKUs vs UPC codes
Enterprises have different SKUs for the same products because SKUs are created internally by businesses to maintain inventory. Different SKUs enable merchants to create marketing campaigns independently of competing sellers.
For instance, customers cannot simply view the identical refrigerator at various vendors based on the SKU alone if a company uses the SKU to advertise a specific discounted refrigerator. This prevents rival businesses from matching advertised prices and stealing clients. In contrast, regardless of the company selling the goods, universal product codes (UPCs) are the same.
Barcode vs SKU
SKUs are frequently represented as barcodes. However, they are not always employed in the same ways. UPC(Universal product code), or “universal product codes," are barcodes that are used to identify products in stores so that they may be recognized regardless of where they are sold. On the other hand, SKUs will also specifically serve to identify the vendor or supplier. Additionally, SKUs are alphanumeric and available in a range of lengths, whereas UPC barcodes usually only contain numbers.
SKU Importance
Customers can compare the attributes of comparable products thanks to SKUs. For instance, when a client buys a specific DVD based on SKU data, online retailers may display identical movies bought by other customers. This tactic could lead to additional purchases from the customer, increasing the company's sales. SKUs also make it possible to get information about sales. A store, for example, can assess which products are selling well and which are not based on the scanned SKUs and the POS data.