Stock keeping unit facts for kids

A Stock Keeping Unit (often called an SKU, pronounced "ESS-KAY-YOO" or "SKOO") is like a special code or name for each different item a business sells, buys, or keeps track of. Think of it as a unique ID for a specific product.

For example, if a store sells T-shirts, each different T-shirt would have its own SKU. A blue T-shirt in size small would have one SKU, while the same blue T-shirt in size medium would have a different SKU. This is because they are different "units" that need to be "kept track of" in the store's inventory.

An SKU helps a business know exactly what they have in stock. It includes all the details that make one item different from another, like its color, size, brand, or even how it's packaged.

What is an SKU?

An SKU is a unique code that helps businesses manage their products. It's not just a number; it represents a specific type of item. When a company counts its products, it counts how many of each SKU it has. This helps them know what they have available to sell.

For example, a shoe store might have:

• SKU 12345: Red Sneakers, Size 7, Brand X
• SKU 12346: Red Sneakers, Size 8, Brand X
• SKU 12347: Blue Sneakers, Size 7, Brand X

Each SKU tells the store exactly which item it is.

How Businesses Use SKUs

Businesses use SKUs to keep their inventory organized. When a product is sold, the business updates its records using the SKU. This helps them:

• Know how much of each item they have left.
• Decide when to order more products.
• Track which products are popular.
• Make sure customers get the right item.

SKUs are often printed on labels or barcodes. This makes it easy to scan and track items quickly, like when you check out at a store.

SKUs vs. Global Tracking Numbers

SKUs are created by each individual business. This means that the same product might have a different SKU at different stores. For example, a specific toy might have one SKU at "Toy Store A" and a different SKU at "Toy Store B."

However, there are also Global Trade Item Numbers (GTINs). These are standard codes used all over the world. Unlike SKUs, GTINs are the same for a product no matter where it's sold.

Some common types of GTINs you might have seen include:

• Universal Product Code (UPC): These are the barcodes you often see on products in North America.
• European Article Number (EAN): Similar to UPCs, but used more commonly in Europe.
• Australian Product Number (APN): Used in Australia.

While GTINs are for global tracking, SKUs are for a company's internal tracking. A business can choose to use the vendor's SKU or create its own when it receives new items.

See also

In Spanish: Stock-keeping unit para niños