Stock keeping unit (SKU)
Also called item number
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is stock keeping unit (SKU)?
A stock keeping unit (SKU) is the unique code a distributor gives each item it sells, so each size, color and pack can be stocked and priced separately. Unlike a UPC barcode, which identifies a product everywhere it is sold, a SKU is the distributor’s own internal number, and it may or may not match the manufacturer’s part number.
How it works
All SKUs live in the ERP’s item master. Some distributors build the SKU from a supplier line code plus the manufacturer part number. A SKU, once assigned, should never be reused for a different item, so its sales history stays meaningful. Distributors describe catalog size with two counts: stocked SKUs, kept in inventory, and total SKUs, which add the non-stock items that can be ordered. A distributor might stock 15,000 and sell 200,000.
The full comparison is under SKU vs UPC vs MPN.
Stock keeping unit (SKU) example
A brass ball valve comes in ½-inch, ¾-inch, 1-inch and 2-inch sizes, and each has its own SKU. That is why a buyer can see the ½-inch running low while the 2-inch is overstocked.
Related terms
- Manufacturer part number (MPN)A manufacturer part number (MPN) is the code a manufacturer uses to identify a specific product, printed in its catalogs and often on the product itself.
- Universal Product Code (UPC)A Universal Product Code (UPC) is the 12-digit number in the barcode on a product’s packaging, assigned by the brand owner through GS1.
- Unit of measure (UOM)A unit of measure (UOM) is the unit an item is bought, stocked or sold in, such as each, box, case, pallet, foot or pound.
- Non-stock itemA non-stock item is a product the distributor sells but doesn’t keep on its shelves, ordering it from the supplier only when a customer asks for it.
- SupersessionSupersession is a manufacturer’s replacement of an old part number with a new one for the same or an improved part.
