What is a SKU? this is understanding and how to apply it
For millennials, the entrepreneurial profession is currently a very interesting choice. Office employees are currently even a lot of time to open a home business to increase income. What’s more for a housewife who has spent more time at home. For those who sell many variants of eating products understand the understanding of the SKU is very important.
Opening a business independently certainly is an interesting solution and promises to maintain their financial stability.
Although it is a home-based business and the scale is small, the wires still have to pay attention to inventory management for what they sell. Warung business owners, shops and other entrepreneurs still make it possible to implement a product management system like a large company, namely by applying the SKU or Stock Keeping Unit.
Use of the SKU in the effort
Basically, the definition of SKU is the naming method for each product to be offered or sold. Usually, the SKU will be in the form of a row of numbers to be labeled on a product and will be the identity of the product. The application can be said to be similar to the barcode in the form of a black line. But, both are different entities.
The row of SKU numbers has been established independently by the entrepreneurs or shop owners, while the barcode itself has been directly established by producers to avoid using similar numbers. Another case with UPC or barcode, the SKU is not universal. So, each store can have a SKU for each item itself.
Usually, the use of a SKU is distinguished in each product category. For example, the SKU between goods is distinguished based on product size, type, and its items. Later, this product will make it easier for shop owners and also consumers to identify each product that is desirable.
So if there are buyers who induce a particular product, then the shop owner can easily find the desired goods buyer based on the intended criteria.
Benefits of SKU in Business Management
Selaui can facilitate the identification of a product, utilizing a SKU will also make it easier for entrepreneurs in the inventory of which products that are most popular with consumers and any interesting products. That is, the row of SKU numbers is able to facilitate entrepreneurs in terms of data collection for a daily sales to monthly.
Based on the data collection, later business owners will be able to plan product supply. For example, the entrepreneurs can immediately make a stock of X products that are most interested in consumers. In addition, the SKU will also make it easier for entrepreneurs in distributing their products.
In terms of applying, generally the SKU will be divided based on the classification of products and its categories. Many entrepreneurs who use the next serial number in terms of the SKU to compok the product simultaneously so that it can be analyzed and also recorded. For example, 30-15xxx is a product for racing bikes and 30-25xxx is for folding bikes.
Furthermore, the number listed will be used as a color indicator. So, 30-1505x is for blue racing bikes and 30-1506x is for yellow racing bikes.
Benefits of SKU in the Retail Business field
Based on its use, the benefits of the SKU in retail efforts are as follows:
- Identification of goods specifications
In the retail business sector, a particular type of goods has a specification that turns out to be diverse. Starting from the type, brand, color, size, etc. Implementation is a good SKU SKU in which there are all the information related to detail the goods in question, so it would be easier to identify the product because the SKU is important in distinguishing the goods from each other barng
- Maintaining Availability of Goods
In the retail business, supply of merchandise is the most important thing. Each of these products will be given a SKU code in accordance with the specifications, the objective to be monitored properly from start to be accepted by distributors of goods to be sold to the consumer, even if the damage or defect arises later.
Noting the items automatically or manually by using the “bin card” will still refer to the SKUs based on the goods.
- Track the location of the goods
In the retail business field, we will be very easy to meet a store that has more than one storage warehouse. Applying a clear and right SKU will certainly make it easier for entrepreneurs to know the information on the warehouse where the product is stored.
- Identify the benefits of an item
By implementing the right SKU system, employers will be easier to get detailed information related to sales and product profits, until all details of the item specifications are based on brands, types, colors, sizes etc.
All of these reports will help them in determining the goods with which specifications must be invested and which may have to be reduced or terminate their sales.
When should you apply a SKU?
In principle, the stock keeping unit or SKU is used to inventory a product that does have a product with a variety of many types. If the product sold by the store is not diverse, then of course the SKU is not needed.
Conversely, if the product sold by the store turns out to be very diverse than the brand to a certain size, the SKU is very important. Simply put, the SKU will be greatly felt if there are products that have more than one type of size, brand, color, and type.
How to Apply SKU
As previously discussed, that the use of the SKU can be in the form of a row of numbers, letters, or combinations between the two. The policy of this application is certainly returned to each producer or store, because basically the use of the SKU is more focused on making it easier for entrepreneurs.
However, try to make the application of the SKU not difficult for staff and must facilitate entrepreneurs and consumers in choosing or looking for products.
- Example of Application of SKU 1
As a case study, let’s try making a SKU for bicycle products on the size of the surly brand of yellow. This product can be changed into the SKU with: SRL-SPD-DWS-KNG-0025.
The explanation, SRL is a brand code for Surly. This brand code is usually placed on the front to be easier to distinguish products. While SPD is an explanation of products for bicycles, DWS, is to explain that this product is for adults. KNG is a color code for yellow, and 0025 is the serial number of the product.
It is necessary to emphasize once again that employers can freely implement the SKU code according to their needs and ties. Because, basically SKU is a tool used to facilitate the company’s internal administration only.
- Example of Implementation of SKU 2
Reported directly from the Fassresult page, naming the SKU on bolt products that have a number of 500 stems with a variety of variants of size and material.
In it, we must write a SKU on this product. This code can be written in the form of: BT15BS1011. That is, BT is for bolts, 15 is the length of the bolt of 15 cm, BS is for iron material, and 1011 is the date of purchase, namely November 10.
Apply a SKU in the Marketplace
Apparently, the SKU can also be used in the Marketplace or Online Shop platform which is currently more widely used. For example, when we shop at the Amazon Marketplace and look for certain products. Without you realizing it, the Amazon party will provide the recommended product when you search for the product. That’s where the SKU works by applying product recommendations for consumers.
The Amazon party has shaped and used the SKU and its unique code to track your interest in a product. When you are looking for X products, the computer system will advise you about Y or Z products that are similar to the product you are looking for. For example, when you see a mouse product, then their system will display another mouse that you really might like.
Exposing the SKU on inventory items sold in general is not an option, but as a step is obliged to be done to make it easier for entrepreneurs to help reset the market and also make it easier for consumers in finding products based on quality and prices that are very diverse automatically.
Tips for Making a SKU for Your Business
If you are indeed interested in using a SKU, then there are some suggestions that you must pay attention to, namely:
- Make rules or instructions in making your SKU sendri so that your employees can get references every time there are new items.
- Use a combination of letters and numbers
- Enter various ways to include specifications in the SKU, such as brands, size, color, date of purchase, warehouse location, etc.
- Try to keep the SKU code short and easier to remember.
The Importance of SKU in Inventory Management
In addition to being able to facilitate the identification of a product, utilizing and understanding the definition of the SKU will also make it easier for entrepreneurs in the inventory of which products that are most popular with consumers and any interesting products.
Understanding the application and understanding of a good SKU is a SKU in which there are all information related to the details of the item in question, so it will be easier to identify the product because the SKU is an important thing in distinguishing one item with other items
Conversely, if the product sold by the store turns out to be very diverse with various brands of up to a certain size, the SKU is very important. Simply put, the SKU will be greatly felt if there are products that have more than one type of size, brand, color, and type.
By understanding the understanding and implementing the SKU on inventory items sold in general is not an option, but as a required step to be done to make it easier for entrepreneurs to help retain pasts and also facilitate consumers in finding products based on quality and prices that are very diverse automatically.
After you read it clearly about the definition of the SKU and its application, of course you’ve been sure of making a large amount of SKU, because it will make it easier for you to make it easier for you in terms of inventory management.
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