What is Stock-Keeping Unit (SKU)

Terms

DO YOU HAVE A PRODUCT
WE SHOULD KNOW ABOUT?

National Network of DSD Distributors & Retail Owners

Mr. Checkout is a network of over 1,100 independent distributors and 50,000 independent retail owners across the USA, parts of Canada and the Caribbean. Distributors and independent retail owners use Mr. Checkout to find new products that are ready for retail and can handle rapid growth through independent channels.

 

 

 

 

Define Stock-Keeping Unit (SKU)

A category of unit with a unique combination of form, fit, and function (i.e., unique components held in stock). To illustrate: If two items are indistinguishable to the purchaser, or if any distinguishing characteristics visible to the purchaser are not important to the purchaser so that the purchaser believes the two items to be the same, these two items are part of the same SKU.
As a further illustration: consider a computer company that allows purchasers to configure a complete computer from a selection of standard components. For example, they can choose from three keyboards, three monitors, and three CPUs. Purchasers may also individually buy keyboards, monitors, and CPUs. If the stock were held at the configuration component level, the company would have nine SKUs. If the company stocks at the component level, the company would have 36 SKUs. (9 component SKUs + 3*3*3 configured product SKUs.) If, as part of a promotional campaign, the company also specially packaged the products, the company would have a total of 72 SKUs.

 

Ready To Get Started?

 

DistributorNational Network of DSD Distributors & Retail Owners

Mr. Checkout is a network of over 1,100 independent distributors and 50,000 independent retail owners across the USA, parts of Canada and the Caribbean. Distributors and independent retail owners use Mr. Checkout to find new products that are ready for retail and can handle rapid growth through independent channels.