Stock Keeping Unit (SKU)

What is a Stock Keeping Unit (SKU) ?

A Stock Keeping Unit (SKU) is a unique identifier used by businesses to track and manage inventory. 

It's typically a combination of letters and numbers that represents a specific product, including details like its type, size, color, or other attributes. SKUs help companies easily track stock levels, manage orders, and streamline logistics.

For example, a retailer might have different SKUs for a red shirt size medium and a blue shirt size large, even though they are essentially the same type of product—this distinction helps the business manage inventory more efficiently.

How does SKU fit into the overall process?

  1. Product Identification: Each SKU is a unique identifier for a product or item. Field sales reps can use SKUs to quickly identify products in their inventory when meeting with customers. For example, instead of using long product descriptions, they can scan or enter the SKU to retrieve detailed information about the item.
  2. Inventory Tracking: SKUs help track the quantities of products in the field. Reps can monitor stock levels, know when to reorder, or determine if a particular product is out of stock at certain locations. This helps avoid stockouts and ensures efficient product distribution.
  3. Order Management: When a customer places an order, the field sales rep can record the SKU associated with the products requested. This helps streamline the order fulfillment process, ensuring the correct items are shipped or delivered.
  4. Pricing and Discounts: Field sales apps can be programmed to recognize specific SKUs and apply the correct pricing, including any promotions or discounts tied to the products. This ensures that sales reps can quote accurate prices without error.
  5. Reporting & Analytics: With accurate SKU data, businesses can track sales performance for individual products, regions, or sales representatives. This data can inform stock replenishment strategies, marketing campaigns, and sales goals.
  6. Integration with CRM/ERP: Many field sales applications integrate with other enterprise systems, such as Customer Relationship Management (CRM) or Enterprise Resource Planning (ERP) software. This allows for seamless updates of sales data and inventory levels, improving overall coordination across different departments.

In summary, SKUs in a field sales application help improve efficiency in managing product data, tracking inventory, processing orders, and ensuring accurate reporting.


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