What Is Product Sku Code

A Product SKU Code (Stock Keeping Unit) is a unique code assigned to individual products to help businesses keep track of inventory. SKUs are used across retail stores, e-commerce platforms, and especially in warehouse operations, where thousands of items may be stored on shelves.



Each SKU code is designed to represent a specific item, not just the product type, but also its size, color, and any other variation. For example, a red T-shirt in size medium will have a different SKU than the same shirt in size large.

In a warehouse setting, where products are stored on warehouse racking, SKUs play a crucial role. They allow staff to quickly locate and manage stock. Each shelf or storage bin can be labeled according to SKU codes, making it easier to find products during order picking and packing. Without SKUs, it would be easy to confuse similar products or store items in the wrong location.

Unlike barcodes or universal product codes (UPCs), which are standardized and used across many companies, SKU codes are usually created and used internally by a business. This allows companies to design SKU systems that fit their inventory structure, such as organizing by product category, brand, or storage location.

For example, if you sell chrome shelving units of different sizes, you might use a system like “CHS-48X18X72” to indicate a chrome shelf that is 48 inches wide, 18 inches deep, and 72 inches high. This makes it easy for warehouse staff to know exactly what they are handling.

In summary, a product SKU code is essential for efficient inventory management, especially in businesses that deal with physical products stored on warehouse racking systems. It improves accuracy, speeds up fulfillment, and helps prevent costly errors in stock handling.