{"id":1679,"date":"2019-10-22T14:17:44","date_gmt":"2019-10-22T08:47:44","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=1679"},"modified":"2024-07-23T11:58:05","modified_gmt":"2024-07-23T06:28:05","slug":"understand-stock-keeping-unit-the-right-way","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/understand-stock-keeping-unit-the-right-way\/","title":{"rendered":"Understand Stock Keeping Unit the Right Way"},"content":{"rendered":"

SKU is a unique code consisting of alphabets and numbers that identifies the characteristics of each product such as the manufacturer, brand, style, size and colour.<\/span><\/p><\/blockquote>\n

There might be moments for growing businesses when they find themselves struggling to stay on top of their inventories once the sales start rolling in. This is where the Stock Keeping Unit or SKU comes into the picture.\u00a0<\/span><\/p>\n

Next question is – What\u00a0 is SKU?\u00a0<\/span><\/p>\n

Have a look here:<\/span><\/p>\n

KDH-09-ERT<\/span><\/p>\n

Do you know what is this?\u00a0<\/span><\/p>\n

Or…DFR-J-POL this?\u00a0<\/span><\/p>\n

Either you do, or you don\u2019t.\u00a0<\/span><\/p>\n

Either way, we have created a compilation of the most asked question on and about SKU. Read this article to know more.\u00a0<\/span><\/p>\n

What is the stock-keeping unit or SKU?\u00a0<\/span><\/h2>\n

Pronounced as skew and a short form for Stock Keeping Unit, SKU is used by retailers to identify and track their inventory<\/a><\/span> or stock. SKU is a unique code consisting of alphabets and numbers that identifies the characteristics of each product such as the manufacturer, brand, style, size and colour.\u00a0 Companies usually issue their own SKU codes specific to the product or service they offer.\u00a0<\/span><\/p>\n

Why is SKU important?<\/span><\/h2>\n

Let\u2019s understand this better by taking an example.\u00a0<\/span><\/p>\n

You are a textile manufacturer and you have been designing t-shirts for some years now. Let\u2019s say you are manufacturing white t-shirts with mandala print on it.\u00a0<\/span><\/p>\n

Now there are almost 15 unique t-shirts. These come in 5 different colours with 4 size variants (S, M, L, XL).<\/span><\/p>\n

Let\u2019s calculate the number of t-shirts you have now:<\/span><\/p>\n

15*5*4=300.<\/span><\/p>\n

300 unique products!<\/span><\/p>\n

Even if this seems like a very small number at first glance, you know that those are a lot of unique products to take care of.<\/span><\/p>\n

If your warehouse or your store is filled with hundreds or thousands of products that you have no SKU of, then having a clear understanding of stock levels of each product and their variants gets tedious.\u00a0<\/span><\/p>\n

Here are the benefits of having an SKU in place.<\/span><\/p>\n