The Procurement Glossary » Stock Keeping Unit (SKU)
Stock Keeping Unit (SKU)
Inventory & Logistics
Also known as: SKU
Definition
A unique identifier for a distinct product or item, used to track inventory and sales.
Shop related products
Explanation
Each SKU represents one specific variant — size, colour, pack — enabling precise stock, ordering and analysis. SKU proliferation raises complexity and cost, so rationalising SKUs is a common efficiency lever.
Example
The blue A4 folder in packs of ten is its own SKU, separate from the red one.
Related terms
- Inventory — The goods and materials a business holds for use, sale or production.
- Catalog — A curated, priced list of items available for purchase, from which buyers requisition without needing a fresh quote.
- Specification — A precise description of what is required — the features, quality, quantity, standards and performance a supplier must meet.
- SKU Rationalization — Reviewing and reducing the range of SKUs to eliminate redundant, slow-moving or unprofitable items.
Frequently Asked Questions
What is Stock Keeping Unit (SKU)?
A unique identifier for a distinct product or item, used to track inventory and sales. Each SKU represents one specific variant — size, colour, pack — enabling precise stock, ordering and analysis. SKU proliferation raises complexity and cost, so rationalising SKUs is a common efficiency lever.
Can you give an example of Stock Keeping Unit (SKU)?
The blue A4 folder in packs of ten is its own SKU, separate from the red one.
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