Glossary for Industry Terms

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Stock Keeping Unit (SKU)

What is a SKU?

Stock Keeping Unit (SKU) refers to an internal code describing a particular line item for a brand.

SKU codes are used often to hold inventory against and can be used in order management as a reference for fulfilment.

SKU codes are often hidden from or at least not shown to the end customer as they generally provide more value to internal sales and fulfilment teams than the customer themselves. A SKU is generally defined on a size or color level for a product defining the exact item the customer wants.

SKU codes can be used in inventory management in order to hold a specific quantity against each item. This is helpful when determining how much stock of a particular item is left and also helps with creating purchase orders.

A SKU code will generally be used by manufacturers and suppliers as a reference from the Master Line Sheet to a specific tech pack or product specifications (spec) sheet.

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