A stock keeping unit (SKU) is a unique identification code that is used to track products within a company’s inventory system. SKUs are typically assigned by the company and consist of both numbers and letters or symbols. They can be used to identify distinct variations of an item like color, size, or model number, as well as different versions of an item such as a digital download. SKUs are often associated with barcodes, allowing retailers to efficiently scan products for sale at the point of sale (POS) system.
SKUs are often confused with Universal Product Codes (UPCs). While similar in concept, UPCs are primarily used for product tracking and identification at the point of purchase. These codes are managed by GS1 US—a standards organization that sets global trade item numbers (GTINs), which provide a global common language for identifying products across supply chains. The 12-digit UPC code includes the GTIN plus an identifier that represents the manufacturer of the product. On the other hand, while SKUs still use GTINs, they may also include additional information regarding features or customization options; this extra data allows companies to better manage their inventories when dealing with varying models or styles.
