“SKU” is a term often used in business. Even as customers, we frequently hear or see it.
But many people are still unsure what SKU actually means, why it’s necessary, and why it plays such an important role in stock management.
Also Read: Stocktaking: Definition, Purpose, and How ERP Makes It EasyWhat Is a Stock Keeping Unit?
A Stock Keeping Unit (SKU) is a unique code used to identify and track a product in storage.
In short, an SKU is a special identifier, usually a combination of numbers, letters, or symbols, that differentiates one product from another, even if they’re very similar.
Simple example:
- SKU for “Blue Premium Scuba Leggings” could be: LSCB-PR-BL
- SKU for “Red Premium Scuba Leggings” could be: LSCB-PR-RD
Both are premium scuba leggings, but with different colors. With SKUs, you can easily see which products sell out quickly, which ones are slow-moving, or which need urgent restocking.
Why Are SKUs Important?
Many businesses initially view products in general categories, like “premium leggings” or “sports shoes.”
But once variations (color, size, style) are added, manual tracking gets overwhelming. Here’s why SKUs matter:
Easier stock tracking
Know the inventory of each product variant, not just the total.
Avoids shipping errors
Clear SKUs reduce mistakes during picking & packing.
More detailed sales data
Analyze exactly which SKU performs best.
Supports business growth
As your catalog grows, a proper SKU system makes scaling easier.
SKUs and ERP:
The Perfect Combination for Data Tracking
With only a handful of products, spreadsheets might work. But imagine managing hundreds or even thousands of SKUs.
Manual tracking wastes time, is prone to errors, and makes reporting messy.
This is where ERP (Enterprise Resource Planning) comes in. ERP systems like Odoo help automate SKU management and track inventory in real time.
Benefits of using ERP for SKU tracking:
Centralized data
All SKUs and product info stored in one database, accessible by warehouse, sales, and finance teams.
Real-time stock updates
Instantly reflects sales, purchases, and transfers.
Cross-module integration
SKUs connect not just to warehouse, but also to POS, eCommerce, purchasing, and accounting.
Automated reporting
Generate stock reports, sales per SKU, and profit margins with just a click.
If your business still relies on manual methods, it might be time to switch to a smarter system. With ERP like Odoo, what once felt like a headache (SKUs) can turn into valuable insights that fuel your business growth.
Excited to see how it works? See for yourself by clicking the button below! 👇
