SKU Nomenclature Policy

SKU (pronounced as skew) is the abbreviation of the term 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.To read the full transcript of this podcast, please click here. *****For more details related to Supply Chain Consulting, Certifications (CSCP, CPIM and CLTD) and Executive Development Programs, please visit www.IISCM.org. Fhyzics is an Authorized Channel Partner (ACP) of APICS, USA [Part of the ASCM Network].