What is the role of a stock-keeping unit (SKU) in warehouse operations?

A stock-keeping unit (SKU) plays a critical role in warehouse operations by serving as a unique identifier for individual items within the inventory. Each SKU is generally assigned to a specific product, allowing for precise tracking and management. This facilitates an array of operational tasks, including inventory control, order fulfillment, and replenishment processes. By using SKUs, warehouses can efficiently monitor stock levels, identify which products are selling well or require restocking, and help prevent stock discrepancies.

In essence, the SKU system enhances the accuracy and efficiency of warehouse management by providing a clear and systematic way to manage products throughout the supply chain. This has a cascading effect on overall operational efficiency, making it an essential component in inventory management practices. Tracking items accurately through their unique SKU fosters better decision-making regarding inventory turnover and restocking needs.