How to generate an SKU

Stock Keeping Units (SKUs) might seem like a mundane administrative detail, but they're the backbone of efficient inventory management and streamlined operations for any wholesaler. A well-structured SKU system can save you time, minimise errors, and provide valuable insights into your product performance. Let's unlock some clever tips and tricks to generate SKUs that work seamlessly for your wholesale business.

1. Decode the SKU Structure:

• Clarity is King: SKUs are meant to be quickly understood by both humans and computers. Aim for a logical and easy-to-read format that conveys key product attributes.

• Components of a SKU:

  • Product Category or Type (e.g., "TS" for T-shirt)

  • Brand or Manufacturer (e.g., "NK" for Nike)

  • Style or Model Number (e.g., "A123")

  • Size or Variation (e.g., "M" for Medium, "BL" for Blue)

  • Other Attributes (e.g., "W" for Winter collection)

2. Prioritise and Organise:

• Most Important First: Start your SKU with the most crucial identifier for your business. This could be the product category, brand, or a specific attribute that significantly impacts your inventory management.

• Consistent Order: Maintain a consistent order of attributes within your SKUs. This makes it easier to scan and interpret the information at a glance.

3. Leverage Numbers and Letters Strategically:

• Numbers: Numbers are ideal for representing sizes, colours, or sequential identifiers.

• Letters: Letters can be used for product categories, brands, or attributes where abbreviations are helpful.

• Avoid Confusion: Steer clear of letters that look like numbers (e.g., "O" and "0") to prevent misinterpretations.

4. Keep it Concise, but Meaningful:

• Optimal Length: While there's no strict rule, aim for SKUs between 8-12 characters for a balance between clarity and brevity.

• Avoid Spaces and Special Characters: These can cause issues in databases and spreadsheets. Use hyphens or underscores if necessary to separate attributes.

5. Use a SKU Generator (When Possible):

• Automation: For large or complex product ranges, consider using a SKU generator tool. These tools can automate the creation process and ensure consistency across your SKUs.

• Customisation: Choose a generator that allows you to tailor the SKU structure to your specific needs and attributes.

6. Regularly Review and Optimise:

• Evolving Needs: As your product offerings expand or change, periodically review your SKU system to ensure it remains effective and efficient.

• Streamline: If you find certain attributes are no longer relevant or causing confusion, consider updating your SKUs to reflect your current needs.

Example: SKU Generation for Wholesale Footwear

Let's say you're a wholesaler specialising in footwear. Here's an example of a SKU structure you might use:

[FT]-[BR]-[ST]-[SZ]-[CL]

• FT: Footwear type (e.g., SN for Sneakers, BO for Boots)

• BR: Brand (e.g., AD for Adidas, NK for Nike)

• ST: Style or Model Number (e.g., R500)

• SZ: Size (e.g., 09 for US size 9)

• CL: Color (e.g., BL for Black, BR for Brown)

So, the SKU "SN-AD-R500-09-BL" would represent a pair of black Adidas sneakers in size 9, style R500.

Beyond the Basics: Extra Tips

• Sequential Numbering: If you have multiple variations within a style (e.g., different colours), add a sequential number at the end of the SKU to distinguish them (e.g., SN-AD-R500-09-BL-01, SN-AD-R500-09-BR-02).

• Vendor-Specific Codes: If you work with multiple vendors or suppliers, consider incorporating vendor-specific codes within your SKUs to facilitate tracking and reordering.

• Integrate with Inventory Management: Ensure your SKU system seamlessly integrates with your inventory management software or ERP system to streamline data flow and avoid manual errors.

Conclusion

Mastering the art of SKU generation is an investment that pays off in the long run. Well-structured SKUs empower you to manage your inventory efficiently, track product performance, and fulfil orders with accuracy, ultimately leading to improved customer satisfaction and increased profitability.