Posts from 2019-03-11

SKU Nomenclature Policy

SKU (pronounced as skew) is the abbreviation of Stock Keeping Unit. SKU helps us to uniquely identify a product. Each organisation have their own SKU nomenclature policy, which refers to the methodology of numbering SKUs, governance and control. A given SKU number provides the same understanding to all the stakeholders not only inside your organisation, but also to your suppliers, customers and other stakeholders. When a product has a different form or fit or function from another product it will gain a different SKU number. Here one need to follow the concept of materiality, meaning whether the differences are significant or not. A good SKU Nomenclature Policy is the foundation of an effective and efficient inventory management.

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Association For Supply Chain Management (ASCM), USA