The Logistician
  • Tiếng ViệtTiếng Việt
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Login
  • Register
No Result
View All Result
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Tiếng ViệtTiếng Việt
  • Login
  • Register
No Result
View All Result
The Logistician
No Result
View All Result

What you should know about SKU

With a warehouse with hundreds or thousands of products, how can businesses control the status of all items? The answer is SKU, a way to encrypt goods that are used very commonly in the world. To know more about this, let's find out with the Logistician in the article below.

The Logistician by The Logistician
30/11/2021
in Blog
Những điều cần biết về SKU

Image: Nhi Pham

HIGHLIGHTS

  • SKU (Stock Keeping Unit) is an alphanumeric code that is used to categorize inventory goods, including products or services.
  • SKU has an important role in the management of goods and warehouses of businesses. The larger the company, the more necessary it is to use this.
  • The main distinction between SKUs and UPCs is that SKUs are optimized for internal inventory control, while UPCs are standardized such that anybody (by convention) can read them.

FULL ARTICLE

What is SKU?

SKU (Stock Keeping Unit) is an alphanumeric code that is used to categorize inventory goods, including products or services.

It has parameters, properties, and unique signs to distinguish between things. It contains information such as kind of product, manufacturer, description, size, color, material, packaging, and warranty terms. As a result, this code is a critical component in inventory management.

SKU is a very important element in inventory management

SKU also refers to a unique location or a code segment corresponding to the storage unit. Two same products, stored in two different warehouses, will have different SKUs.

In addition, there are neither regulated nor standardized. The number of SKU codes is unlimited, each product only needs to be named according to the standards of the management unit. When businesses receive goods from suppliers, they have the choice to maintain the supplier’s SKUs or create new SKUs themselves. However, from experience, this is an internal product management code, so it is advisable to create your own SKU code. Additionally, SKUs are only relevant to available and ready-to-trade goods, nor to goods that have been ordered or are in transit.

What role does SKU play in inventory management?

SKU has an important role in the management of goods and warehouses of businesses. The larger the company, the more necessary it is to use. Some of the prominent roles include:

  • Timely inventory tracking and replenishment: Using SKU allows firms to easily control product quantity. Businesses can then determine and construct an appropriate supplementary order plan (when to order and how much to order). This helps the company’s responsiveness.
Using SKU codes helps businesses easily check product quantity
  • Sales forecasting: Through information about customer needs, businesses can forecast their business sales in the future.
  • Shopping experience and store interface: The SKU system allows enterprises to categorize products in a variety of ways, such as item type, collection, supplier, and so on. Product management will become much more difficult, even confusion, errors will occur without this code. In response to customer requests, losing track of product location will leave a very bad image for customers.
Without the SKU, product management will become much more difficult, even confusion, errors will occur.
  • Means of improving service and payment: Scanning the SKU code through the payment system makes the payment process fast and accurate. After each payment, the remaining inventory will also be updated, saving inventory time.

SKU Configuration

There are various ways to name the SKU code depending on the item and the nature of the business. It is not difficult to set; simply use letters or numbers according to the convention for the information that you want to include in the SKU code. Some examples of information that should be included in the SKU code are:

  • Name of the manufacturer (or brand name).
  • Product Information: Material description (cotton, khaki, silk, brocade, etc.); product shape (long, short, square, round, triangle, etc.).
  • Date of purchase: Include how many days, months, and years there are in a year (only the last 2 numbers should be used).
  • Warehouse: If you have many warehouses, you can have a different symbol for each one based on the location of Hanoi, Ho Chi Minh City, etc., or by County, District.
  • Size of the product.
  • Color of the product.
  • Condition of the item: new or used.

Combining all of the above allows you to simply set product SKUs based on category.

Some basic information on the SKU code
Example of information on the SKU of a washing machine

As mentioned before, setting the SKU code is completely dependent on the business nature of the enterprise. Some notes on generating SKUs, including:

  • Arrange the fields in the SKU code properly: Follow the rule from broad to specific (from the category, product type to brand and finally product features). All SKU codes are applied like that instead of each code ordering a style, making it easy for employees to quickly identify the product.
  • Do not use too much information: Consider what information is most important that can distinguish between products such as branch, product type, size number, color, etc.
  • Easy-to-read fonts and characters: Avoid characters that seem like both letters and numbers, such as the letter “O” and the number “0.” Special characters such as “/”, “>”, “*”, etc, not only makes it difficult for staff to recall, but it can also lead to spreadsheet errors.
  • Use warehouse management software with SKU such as ASOFT-WM, SAPO, Kiotviet, etc. Code management with traditional software such as Google Sheets or Excel can lead to shortages or excesses, uncontrollable errors.

Distinguishing SKU and UPC

UPC (Universal Product Code) is a type of barcode that is a sequence of 11 digits (with values 0 to 9) with a check digit at the end. This is a sort of barcode that is commonly used in the United States, Canada, the United Kingdom, Australia, New Zealand, Europe, and other nations to track commercial items in retailers.

The main distinction between SKUs and UPCs is that SKUs are optimized for internal inventory control, while UPCs are standardized such that anybody (by convention) can read them. As a result, the same product may have multiple SKUs yet just a single UPC in different organizations.

Different companies may have different SKUs but only one UPC

Table comparing the difference between SKU and UPC

SKUUPC
Depending on the management unit, usually from 8 – 12 characters.

Includes both letters and numbers.

12 characters.

Just numbers, no letters.

SKU is created by a distributor or the unit directly managing the product.UPC is based on existing regulations, administered by GS1 US, the US branch of GS1 international organization (formerly known as the Uniform Code Council).
SKU is unique, used within the company, product management units.UPC is commonly and consistently used for a product.

Van Anh

FURTHER READING

TYPES OF INVENTORY

Tags: SKUUPC

Related Posts

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

01/07/2022
0
Private: TP Hồ Chí Minh xem xét chuyển đổi mục đích sử dụng một số khu công nghiệp sang logistics

Ho Chi Minh City considers converting some industrial parks into logistics

29/06/2022
0
Image: Thu Trang

DB Schenker’s agreement to acquire USA Truck

28/06/2022
0
Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

22/06/2022
0
FedEx invests in FourKites to build intelligent supply chain platform

FedEx invests in FourKites to build intelligent supply chain platform

22/06/2022
0
LG Electronics “shake hand” with CJ Logistics to develop logistics robots

LG Electronics “shake hand” with CJ Logistics to develop logistics robots

19/06/2022
0

ĐỀ XUẤT NÊN ĐỌC

Những dòng máy bay nào bị khai tử do Covid-19?

What Aircraft Types Have Been Retired Most Due To COVID-19?

3 years ago
0
Hoa Kỳ: Tăng trưởng sản xuất hạ nhiệt, tình trạng “nút thắt cổ chai” bắt đầu nới lỏng

USA: Manufacturing growth cools down, the situation of “bottlenecks” starting to abate

2 years ago
0
Tham vọng của Maersk và thương vụ mua lại LF Logistics hàng tỷ đô

Maersk’s ambitions and billion-dollar acquisition of LF Logistics

2 years ago
0
Campuchia: Xuất khẩu nông sản sang Việt Nam tăng vọt

Cambodia: Exports of agricultural products to Vietnam skyrocketed

2 years ago
0
ADVERTISEMENT

THẺ NỔI BẬT

ACQUISITIONaircraftairlinesamazonAppleblockchainBoeingchinaCMA CGMcontainerContainer shortageCovid-19covid19crisisDHLe-commerceEVFTAexportfedexFoxconngoodsinfrastructureInvestmentLNGlogisticsLogistics centerM&Amaerskportport congestionRAILWAYRussiaRussia-Ukraineseasupply chainSupply chain disruptiontechnologyThai AirwaysthailandtransportusvietnamVietnam AirlineswalmartWarehouse
ADVERTISEMENT

TIN TỨC PHỔ BIẾN

  • Uniqlo Supply Chain Management

    Uniqlo Supply Chain Management

    0 shares
    Share 0 Tweet 0
  • Certificates that advance your career in Logistics and supply chain management

    0 shares
    Share 0 Tweet 0
  • Cross-docking: The key to Walmart’s great success

    0 shares
    Share 0 Tweet 0
  • How Aviation Fuel Differs From Regular Fuel

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube RSS
The Logistician

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

  • Login
  • Sign Up
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

-
00:00
00:00

Danh sách

Update Required Flash plugin
-
00:00
00:00