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What Are Stock Keeping Units (SKUs)?

Understand how Stock Keeping Units fit into the supply chain

A Stock Keeping Unit (SKU) is ascannable barcode with characters attached to a product used for inventory identification and tracking. A SKU also indicates the pricing, product and manufacturer information for a product. Within a warehouse, effective SKU management can speed up delivery and control costs. By properly placing and managing SKUs, manufacturers and suppliers can maximize the number of picks an associate can accommodate, increase agility within the supply chain and decrease inventory cost.