What does SKU stand for in a warehouse context?

In a warehouse context, SKU stands for Stock Keeping Unit. This term is essential as it represents a unique identifier that businesses assign to each distinct product or item for inventory management purposes. Each SKU is tied to specific details about the product, including its characteristics such as size, color, and model, which aids in tracking inventory levels, sales data, and order fulfillment processes.

The use of SKUs is crucial for efficient warehouse operations as it allows staff to quickly locate items, manage stock levels, and reduce errors in order picking. A well-organized SKU system helps businesses maintain accurate records of inventory, supports supply chain management, and enhances overall operational efficiency. This unique identifier is therefore foundational in both physical and digital inventory systems, ensuring that each product can be tracked comprehensively from receipt through storage to sale.