12 March 2022 Understanding the purpose of SKUs in warehouses, their advantages, and how to properly prepare them Organization is essential for inventory management. Handling the storage of hundreds or thousands of different products requires strategies that allow for the correct and practical identification of each item. Identification helps not only in the warehouse’s daily routine but also in financial and accounting operations and in conducting inventories, which are crucial for ensuring accuracy. To assist managers in this process, there is the SKU. In this text, we will present the definition of SKU, the difference between SKU and GTIN, their advantages, and best practices for their use. Take a look below. What is the SKU? The acronym SKU stands for “Stock Keeping Unit.” These are alphanumeric codes, ranging from 6 to 18 characters, that help companies manage their inventory. Each product has an SKU, which can be as elaborate as the company desires, expressing details such as the manufacturer, category, or product variations like size, weight, color, etc. It is usually printed next to the product code, barcodes, and GTIN. The use of SKU simplifies stock management, merchandise identification, and material flow, helping to quickly identify each type of product in every process, whether at entry, storage, separation, shipping, or inventory. It is also through the SKU that sold, delivered, exchanged, or returned items are identified. The code also allows for the evaluation of demand history and the quantity of products stored, important requirements for ensuring an ideal stock level. In addition to logistics warehouses, the SKU is used in marketplaces, virtual stores, e-commerce platforms, or any type of activity that wishes to manage inventory efficiently. What is the difference between SKU and GTIN? Since they are company-specific and not universal, SKUs have some differences compared to GTIN (barcodes): âś“ SKUs are assigned internally, while GTIN are assigned by the GS1 organization and follow global standards. âś“ SKUs can be created in any way the company desires, whereas GTIN must follow specific procedures. âś“ SKUs can include letters alongside numbers, while GTIN are composed only of numbers. The main difference between SKU and GTIN is that the primary purpose of SKUs is internal use within an organization, while GTIN are primarily used for external regulation. Why are SKUs useful? SKUs are so important in logistics operations that they have practically become a necessity. Besides greatly aiding in inventory organization, they also allow for: âś“ Precise control and localization of items. âś“ Reduction in product search time. âś“ Better planning for merchandise purchases. âś“ Detailed sales analyses, aiding in commercial and promotional strategies. âś“ Prevention of shipping errors. âś“ Ease in managing returns and exchanges. By using well-planned and organized SKUs, the company can optimize its operations, reduce costs, and increase efficiency. The clarity and accuracy of the information will greatly improve inventory management and customer satisfaction. How to properly prepare SKUs? To maximize the benefits of using SKUs, it is essential that they are prepared correctly. Following some guidelines can facilitate this process: 1. Define a standard structure: It is important that all SKUs follow a scheme or format. This facilitates product identification and search. 2. Avoid special characters: Use only letters and numbers. Special characters can cause confusion or problems with inventory management software. 3. Be descriptive: Including relevant product information in the SKU can be very useful, especially if managing many variants of the same product. 4. Maintain a reasonable length: SKUs that are too long can be difficult to manage and remember. It is ideal to maintain a length that balances the need for information with practicality. 5. Use an inventory management system: An automated system can greatly facilitate the management of SKUs and overall inventory. 6. Update regularly: SKUs should be reviewed and updated regularly to reflect changes in inventory or product offerings. Following these guidelines will help maintain an effective and functional SKU system, which will contribute to efficient inventory management and the success of the logistics operation. Conclusion SKUs are an essential tool for any company that wants to have accurate and detailed control of its inventory. They not only simplify inventory management but also contribute to increased efficiency and productivity, as well as providing valuable data that can be used in sales and marketing strategies. Properly preparing and managing SKUs is crucial to making the most of these advantages. Now that you know the importance of SKUs and how to prepare them correctly, it’s time to put this information into practice in your logistics or e-commerce operation! SKU: What It Is and How to Use It in Your Warehouse Deagor WMS per ecommerce può aiutarti!