A SKU, or Stock Keeping Unit, is a unique code used to identify a specific product that is in stock. This alphanumeric code is indispensable for inventory management and logistics operations, as it allows products to be tracked and managed. SKUs can contain information about a product’s features, such as size, color and type. SKUs allow companies to better understand their inventory levels, analyze sales and optimize the supply chain. SKUs are thus a fundamental part of the inventory management process.
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SKUs: the key to efficient inventory management
The proper use of SKUs can make all the difference in the world of inventory management. Each SKU consists of a unique combination of letters and numbers that refer to a specific product. These codes are useful not only to distinguish products from one another, but also to provide useful information about the products themselves. This can range from the size and color to the specific features and variants of a product.
Internal use and international standards
SKUs are created primarily for internal use, but international reference codes are also possible to promote uniformity in inventory management. This is especially useful for companies that operate in multiple countries and work with different suppliers. International standards for SKUs provide a consistent overview and better communication between different parties in the supply chain.
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Inventory management and logistics services
SKUs are not only important for inventory management. They also play an important role in logistics services to ensure that the right products are delivered at exactly the right time. With SKUs, companies always know exactly what their inventories are. This reduces excess inventory and prevents shortages.
Dynamics 365 and SKUs
With advanced software such as Dynamics 365, companies can further optimize their SKU systems. This software provides tools for managing inventory levels, analyzing sales data and streamlining the supply chain. By using Dynamics 365, companies can make their inventory management more efficient and effective, leading to higher customer satisfaction and better business results.
Find a buyer through xentys
At xentys, your experienced procurement recruitment agency, we are happy to help you find the right professional for your procurement team. Send a message today and strengthen your purchasing department.
Challenges in managing SKUs
However, managing a large number of SKUs can also present challenges. It is important to strike a balance between detailed product information on the one hand and manageability on the other. Too many SKUs can lead to complexity and higher costs, while too few SKUs can result in lack of accuracy and inefficiency. Companies must therefore think carefully about the design of their SKU systems and ensure that they are well aligned with their operational needs and goals.
Take your career to the next level through Xentys
Xentys knows better than anyone how important efficient inventory management is to the success of our clients. We have been specializing in recruitment for procurement and supply chain positions in industry, offshore and construction since 2010. We have in-depth knowledge and experience in these disciplines and their associated labor markets. Through us, you can recruit a top buyer with extensive experience in procurement and supply chain management, including the power of SKUs. We can also advise on the right approach for a vacancy for a permanent or interim assignment so that you make the right choice. So if you are looking for a technical buyer, please contact us. We are happy to inform you about what we can do for you!
