Stok Tutma Birimi (SKU) Nedir? Tanım ve Kılavuz
SKU, which is known as the stock keeping unit, is used to manage and regulate product stocks in e-commerce stores. This system assigns a code to each product thus, it is used to form the basis of the inventory management process. Product stocks can be easily managed, and losses can be prevented in this way.
This system can help to take your e-commerce business to the next level. However, what exactly is SKU? How and where is it used? You can reach all the details in this guide.
What is a stock keeping unit?
Stock Keeping Unit (SKU) refers to the alphanumeric code system given to products in the stock of an e-commerce store. This system is used with the name SKU. These codes contain vital information such as the type of product, price, size, and color. The codes given to each product are unique so that the products can be easily managed.
These numbers allow businesses to track stock levels, simplify reordering processes, and find the right products. In addition, it enables rapid identification of products, reduction of errors in the order fulfillment process, and detailed analysis.
Where are SKUs used?
SKUs have a variety of uses to simplify operations and increase efficiency, including warehouses, retail stores, catalogs, online stores, and product distribution centers. Using SKUs in these field helps track stock levels, manage product varieties, and keep accurate records of stock levels. However, it is not only used for stock management but also for managing fields such as warehouse management, supply chain management, sales management, sales analysis, and reporting.
This system is both to increase operational efficiency and to improve customer experience. To illustrate, an e-commerce business can use this system to manage inventory information more accurately and prevent losses.
How are SKUs created?
Albeit there is no common method, businesses create SKUs using their own internal systems. There are some things to consider before you start creating SKUs. First, you should create in a simple format. Then make the numbers identifiable and reuse them for permanent product groups. Furthermore, an SKU generator can be preferred for an easier creation process. You can follow these steps during the creation:
- Categorizing inventory
Before you start creating SKU numbers, you need to categorize the products in your inventory. This categorization process may vary depending on the size of the inventory and product groups. While categorizing small-scale stocks and SKU numbers is simpler, large-scale stocks are more complex. Products can be categorized by color, size, or gender.
- Determining unit length
The SKU number can be changed depending on the characters used. The store owners usually determine the length of this number. If you want to mention more than one feature of the product, the SKU number length should be at least 8 characters.
- Assigning meaning
In this step, after you have enough information about identifiers, you need to assign a meaning to each character related to the products. The numbers you will create include information about the product type, department name, season, and material of the product. To illustrate, the SKU number WOM15S1DM indicates a summer denim jacket in women’s clothing.
- Adding consecutive numbers
Last of all consecutive numbers should be added to the end of the SKU number in order to distinguish between new and old products. At this stage, it is determined in which order the product was released to the market, even if it has the same color, fabric, or size.
How long should SKUs be?
The length of the SKU number may vary depending on the needs of the business. However, it should consist of a minimum of 4 and a maximum of 12 characters. Product categories, subcategories or specific attributes determine whether the number is shortened or extended. It is important that SKU numbers are short and simple for inventory management and to ensure that they are understandable for both employees and systems.
However, creating shorter numbers may not be possible for every business. For businesses which has a limited product range, using shorter numbers will be sufficient. On the other hand, for businesses that have a diverse inventory and more complex operations, codes should be longer and more detailed.
Examples of SKUs
We mentioned that SKU codes may vary for each business. However, we will consider two different examples to indicate key points. These examples are as follows:
- E-commerce business with a wide range of products
If you have a business with multiple brands or product categories, you should use multiple SKU formats. The main reason for creating a detailed code is to be able to specify the product features and to understand which brand created it.
For example, if you have a store in a clothing marketplace and sell clothing products, your products are categorized at this stage and the SKU is created accordingly. When an order is placed for a red M size t-shirt, the SKU is likely to appear as “WOM-S1-TSH-RED-M-002“.
- E-commerce business with limited product variety
On the other hand, if you are a single-brand business or have limited inventory, your SKU numbers will be simpler. On the contrary, there will be no need to use manufacturer information in a large or multi-brand marketplace. At this stage, the field your brand serves will determine the length of the SKU code.
For example, let’s say you are a business that provides service in the coffee sector. Since the products will belong to a single brand, the code to be created will be simpler and more understandable. If this business wants to make an SKU of a blended coffee weighing 12 ounces, the code it will use will be seen as COF-BLND-12OZ.
Stock keeping unit FAQ
What is an example of a stock keeping unit?
SKU numbers will make it easier to track orders, fulfillment, and inventory levels. An example of a Stock Keeping Unit (SKU) might be WOM-SHO-BLK-37. This code is used for a size 37 black shoe.
What does SKU mean in manufacturing?
In manufacturing, Stock Keeping Unit (SKU) products are unique identifiers assigned to each product to track category and inventory. These numbers serve as a reference to follow-up production, inventory, and fulfillment processes. In addition, the uniqueness of SKU codes allows for easy management of products.
How is an SKU created?
To create a SKU, you must divide your inventory into categories. Then, you must specify a unit character length between 4-12 and assign a meaning to each character. Finally, consecutive numbers must be added to the last part to indicate the production order.
