What does the acronym SKU stand for?

The acronym SKU stands for Stock Keeping Unit. This term is widely used in inventory management and retail to identify individual items in a company's inventory. Each SKU is unique to a specific product and often includes important information such as size, color, style, or any distinguishing characteristics that help businesses track their stock levels, manage inventory, and analyze sales trends.

Understanding SKUs is critical for ethical procurement and supply management because they allow organizations to maintain accurate inventories, reduce waste, and make informed purchasing decisions based on real-time data. The clarity and precision provided by SKUs facilitate transparency in the procurement process and help ensure that organizations operate efficiently.