What is SKU ?
SKU stands for Stock Keeping Unit — a unique identifier used to track products and their variations across your inventory system. Each SKU represents a specific item for sale, including distinct attributes like brand, size, flavor, packaging, or color.
In the world of B2B wholesale, retail, and distribution, having a clear and consistent SKU system is essential for efficient product management, accurate sales tracking, and seamless order fulfillment.
What Is an SKU Used For?
SKUs are foundational for internal operations. Unlike barcodes (which are often universal, like UPCs), SKUs are custom-coded by the business. They are used by manufacturers, distributors, and sales teams to:
- Identify and locate products in warehouses or sales systems
- Track inventory across multiple distribution points
- Segment sales data by product type, region, or client
- Manage pricing, promotions, and product availability
- Ensure consistency between what’s sold and what’s delivered
SKU Example in Wholesale Distribution
Let’s say you’re a functional beverage brand selling ginger shots in different flavors and pack sizes. Each variant should have its own SKU:
| Product Name | Fixed SKU |
|---|---|
| GNGR Immunity Shot – 6-Pack | GNGR-IMM-6 |
| GNGR Immunity Shot – 12-Pack | GNGR-IMM-12 |
| GNGR Liver Detox Shot – 6-Pack | GNGR-LIV-6 |
| GNGR Liver Detox Shot – 12-Pack | GNGR-LIV-12 |
| GNGR Digestive Aid Shot – 6-Pack | GNGR-DIG-6 |
These SKUs help warehouse staff fulfill orders accurately, and field reps quickly browse product options while selling in-store.
Why SKU Management Is Crucial for Distributors and Brands
In B2B sales and distribution, especially with hundreds of SKUs across multiple categories, effective SKU management can:
- Avoid costly fulfillment errors
- Improve stock forecasting
- Make reporting and analytics more meaningful
- Enable better product rotation and inventory planning
- Support strong distributor and retailer relationships
Poor SKU management, on the other hand, leads to issues like duplicate entries, inconsistent pricing, out-of-stock items, and lost sales.
SKU vs UPC: What’s the Difference?
| SKU | UPC |
|---|---|
| Internal code created by your business | Universal product code regulated by GS1 |
| Can include product characteristics (flavor, pack size, etc.) | Fixed, numeric barcode |
| Used for internal tracking | Used for scanning at point-of-sale (mainly in retail) |
| Flexible naming conventions | Standardized format |
How SimplyDepo Helps You Organize and Optimize SKU Management
SimplyDepo’s all-in-one platform is designed to support SKU-level visibility and performance tracking across every part of your wholesale operation.
Whether you’re a brand, distributor, or agency working in the field, SimplyDepo makes SKU handling effortless:
💼 Centralized Product Catalog
Upload and manage all your SKUs, complete with product images, descriptions, pack sizes, and pricing tiers via the SimplyDepo Web App.
📱 Mobile Access for Field Sales Reps
Reps can browse, filter, and search SKUs directly from the SimplyDepo Field Sales App when placing B2B orders or presenting product options to retailers.
📊 Analytics by SKU
Track performance and identify your top-selling SKUs, underperforming items, or seasonal sales trends with SKU-level analytics.
🚚 SKU-Driven Route Planning
Combine SKU availability with route optimization to ensure the right products are delivered to the right stores on time.
