Definition
A stock keeping unit (SKU) is a unique code a business assigns to each distinct item it stocks, so it can be identified, counted and sold without ambiguity.
What is a SKU used for?
Each variation that needs its own stock count gets its own SKU: a 2-inch valve and a 3-inch valve are two SKUs, even from the same supplier. SKUs are internal and often meaningful, encoding the category or brand, unlike a barcode such as an EAN-13, which is a standard number made for scanning.
Example: SKU PLM-VLV-050 identifies a 50 mm brass valve stocked in two warehouses.
Don’t confuse a SKU with a supplier’s part number; map the two so purchase orders and receipts line up.