Stock Keeping Unit (SKU)
A Stock Keeping Unit (SKU) is a unique alphanumeric identifier assigned to a specific inventory item in an ERP system. Each SKU represents a distinct product variant based on attributes like size, color, weight, or packaging. In logistics, SKUs are essential for accurately tracking, storing, moving, and managing goods across warehouses and transportation networks. They streamline operations, prevent stock errors, and support efficient order fulfillment.
How SKU Works in Logistics?
When an item is added to the ERP’s inventory master, a SKU is generated or assigned. This code links to detailed product attributes such as description, unit of measure, dimensions, and handling instructions. During picking, packing, or stock audits, the SKU is scanned or selected to ensure the right item is handled. SKUs are used across modules, inventory, warehousing, order processing, and transportation to maintain consistency and visibility throughout the logistics cycle.
Shipment Synchronization in ERP Logistics
Real-Time Data Ingestion
ERP systems update SKU records in real time based on inventory movements, receipts, and shipments, allowing continuous monitoring of item availability and demand.
Milestone Confirmation
When an SKU-linked product moves through milestones like “Received,” “Picked,” or “Shipped,” the ERP logs these against the SKU to maintain accurate stock history.
Delay Alerts and Escalations
Shortages, mis-picks, or discrepancies in SKU quantities trigger ERP alerts, prompting immediate action to prevent order delays or fulfillment issues.
Client Communication
For B2B or eCommerce clients, SKU references in invoices, packing lists, and tracking updates ensure clarity on product delivery and reduce return errors.
Dashboard Visualization
ERP dashboards display SKU-level data, including stock levels, turnover rates, and movement history, supporting purchasing, forecasting, and warehouse planning.
Conclusion
SKUs are the foundation of inventory control within ERP-driven logistics operations. They provide precise tracking, improve operational accuracy, and support smarter decision-making. From the warehouse floor to the customer’s hands, well-managed SKUs ensure a smooth and reliable logistics experience.