How SKUs can make inventory management easier
Searching for products in a messy and chaotic warehouse and storeroom isn’t always pleasant. The worst-case scenario is when all the products in the warehouse look similar, and you have no clue where to start.
You will eventually feel frustrated and agitated.
A simple task that takes only a few minutes to accomplish ends up taking up a few hours to complete.
How can SKU help?
By using the SKUs to manage your inventory, organizations can solve the issue that your employees experienced, as mentioned earlier. Ever since the invention of SKUs, many organizations have started to track and monitor their inventory more efficiently.
The status of each product can be tracked, without fail, especially when utilizing the inventory management system. Hence, businesses can always identify the stock’s level and perform the necessary action when the stock is over-stock or under-stock.
So, what does SKU stand for?
SKU stands for Stock Keeping Units, whereby retailers distributors, mark each of the product with a product code. The SKU format is always in alphanumerical form.
The primary purpose of a product code is to ensure that the internal staff can keep track of the movement of the products in the warehouse or retail store.
For instance, when you are purchasing groceries from the supermarket near you, you should be able to read the product code assigned to each product. You can always find the product code at the back or bottom of the product’s packaging.
The SKU is a unique number assigned to each of your products in the company. Hence, retailers should not incorporate manufacturers’ SKUs to prevent the product code from being out-of-sync.
The Importance of Labeling your Products
Every retailer and distributor should attach the SKU to each of their product. As the business thrives due to continuous demand, it’s harder for them to track the products without any labeling.
Although your company is small in size, it’s still highly advisable for you to incorporate the SKU to your products.
Here are some of the importance of implementing the SKU in your organization:
- It’s convenient
Tagging an SKU to a product helps your business in many ways. By labeling your product, retailers can track the stocks effortlessly. SKU labels have many indications about the products, such as the product’s category, sizes, models, types, and quantity.
Retailers can scan the SKU of a product and immediately recall all the information related to the product. It is very convenient as it enables retailers to capture the specification of the product as quickly as lightning, and therefore increases their work’s speed.
2. It reduces business cost
Implementing a barcode is not that expensive as you think it is. Incorporating a barcode label for a single unit of the product only costs you a few cents!
Aside from that, the product code is compatible with the inventory management system, thus, enables real-time stock updates.
In return, retailers can cut down their long working hours and improve their work efficiency with the implementation of SKU’s barcode, which helps to reduce the overall business cost.
3. Accurate stocktake
Without any SKUs or integration with any inventory management system, it’s not manageable to keep track of the stocks. As most companies hold a massive amount of stocks, it complicated to track the movement of each stock.
With an SKU, businesses can track the movement of the stocks in and out from warehouses or retail shops effortlessly.
Whenever the product is damaged or faulty, updates are be done quickly in the inventory management system.
By examining the SKU, the retailers can have an accurate stocktake whenever they’re auditing the inventory. Whenever the stocks are low or depleted, the retailers can always place their re-orders.
Conclusion
We cannot stress enough the importance of indicating SKU for each product in your warehouses, retail store, and even e-commerce platforms.
It’s time to look into your warehouses, clear out the clutter, and bring your business to the next level.
Click here to find out more about the inventory management system offered by Deskera Books.
