Key Takeaways
- Well-designed SKUs encode product attributes (category, brand, size, color) making them self-descriptive and sortable.
- SKU proliferation increases carrying costs and complexity. Regular rationalization removes underperforming variants.
- SKUs are internal identifiers. UPC/EAN barcodes are standardized external identifiers for retail and marketplace selling.
Designing an Effective SKU System
A good SKU system is logical, scalable, and easy for warehouse staff to interpret:
- Category prefix: 2-3 characters identifying product type (SH = shoes, TS = t-shirt, EL = electronics).
- Brand/supplier code: 2-3 characters for brand identification (NK = Nike, AD = Adidas).
- Attributes: Color, size, material encoded as short codes (BLK = black, LG = large, CTN = cotton).
- Sequence number: Unique numeric suffix for disambiguation within the same attribute combination.
SKU Rules
Never start SKUs with 0 (spreadsheets strip leading zeros). Avoid letters that look like numbers (O/0, I/1, S/5). Never reuse deleted SKUs. Keep total length under 16 characters for barcode compatibility.
Frequently Asked Questions
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