In the world of inventory management and ecommerce, SKU number play an important role.

They are the backbone of efficient stock tracking and management, enabling businesses to keep tabs on their products, streamline operations, and provide a seamless shopping experience for customers.

If you’re looking to create SKU numbers for your products but aren’t sure where to start, you’re in the right place. In this blog post, we’ll see three simple steps to create SKU numbers effectively. 

What is SKU number? 

A SKU (Stock Keeping Unit) is a unique identifier assigned to each product in your inventory. It’s like naming the product in code word. It typically consists of a combination of letters, numbers, and sometimes special characters.

The primary purpose of SKU numbers is to differentiate products and provide essential information immediately, such as product type, size, colour, and other relevant details. 

Let’s see Step-by-Step guide for SKU number Creation 

1. Understand The Meaning Of SKU 

2. Define Your SKU Structure 

3. Implement A Consistent Naming Convention 

Step 1: UNDERSTAND THE MEANING OF SKU number

Before learning how to create SKU, it’s essential to know the basics of SKU (Stock Keeping Unit) numbers. A SKU is a unique identifier assigned to each product in your inventory. It typically consists of a combination of letters, numbers, and sometimes special characters.

The primary purpose of SKU numbers is to differentiate products and provide essential information immediately, such as product type, size, color, and other relevant details. 

To create effective SKU numbers, you need to consider what information you want to encode in each SKU and how you want to structure them. This will vary depending on your specific business needs and the complexity of your product catalogue.  

Step 2: DEFINE YOUR SKU STRUCTURE 

Creating a consistent and organized SKU structure is crucial for efficient inventory management. It ensures that anyone in your organization can quickly decipher the SKU and understand the product it represents.  

How to Label Products with SKU Number

a. Product Type 

Include a code or abbreviation that represents the product category or type. For example, if you sell clothing, you might use “TS” for T-shirts or “SH” for shoes. 

b. Size 

If applicable, add a code or abbreviation for the product’s size. For instance, “S” for small, “M” for medium, and “L” for large. 

c. Colour 

Include a code for the product’s colour, such as “BLK” for black, “RED” for red, and so on. 

d. Material 

If relevant, incorporate the material used in the product. For example, “COT” for cotton, “LEA” for leather, and so forth. 

e. Unique Identifier 

This can be a sequential number or a random combination of characters that distinguishes each product within the same category, size, colour, and material. 

For example, 

SKU Number Generation: 

Here’s an example of how your SKU structure might look for a black cotton T-shirt in size medium: 

• Product Type (TS) 
• Size (M) 
• Colour (BLK) 
• Material (COT) 
• Unique Identifier (001) 

So, the SKU for this specific product could be “TS-M-BLK-COT-001.” 

Step 3: IMPLEMENT A CONSISTENT NAMING CONVENTION 

Consistency is the key when it comes to SKU creation. Establish a standard naming convention that everyone in your organization can follow.

This ensures that all SKU numbers are formatted the same way. It makes it easier to manage and locate products in your inventory system. 

Ways to maintain consistency: 

• Clearly communicate the naming convention to all relevant team members. 
• Use a standardized format for special characters or separators between different components (e.g., hyphens, underscores, or slashes). 
• Ensure that new products are assigned SKU numbers according to the established convention. 

You can easily create SKU numbers that enhance your inventory management processes, reduce errors, and boost overall efficiency. Remember that SKU numbers are not set in stone; you can always adapt and refine your system as your business grows and evolves. 

Conclusion 

SKU numbers are an essential part of any business that deals with inventory. Creating them doesn’t have to be complex. A clear understanding of your products and a well-defined structure can establish an efficient SKU system that benefits your entire organization.

So, go ahead and start implementing these three simple steps to improve your business’s bottom line.