SKU Management (Stock Keeping Unit Management) is a fundamental part of running online stores and marketplaces. It's like a detailed organization system for products where each item variation (like size, color, or style) gets its own unique code or identifier. Think of it as a way to keep track of exactly what products are available, where they are, and how many are in stock. This helps businesses avoid selling items that aren't available and ensures customers get exactly what they ordered. It's similar to inventory management but more detailed, focusing on individual product variations rather than just general product types.
Implemented SKU Management system that reduced inventory errors by 45%
Supervised SKU tracking across 5 warehouses with over 10,000 unique items
Developed automated Stock Keeping Unit classification system for new product launches
Typical job title: "SKU Managers"
Also try searching for:
Q: How would you implement a SKU management system for a company expanding from single-channel to multi-channel sales?
Expected Answer: A strong answer should cover creating a unified system that works across different sales platforms (website, Amazon, physical stores), maintaining consistent inventory tracking, and preventing overselling. They should mention methods for synchronizing stock levels and handling different pricing strategies per channel.
Q: How would you handle SKU rationalization for a large product catalog?
Expected Answer: The candidate should discuss analyzing sales data to identify slow-moving items, considering seasonal patterns, evaluating profit margins per SKU, and making strategic decisions about which products to keep or discontinue. They should also mention the impact on warehouse space and inventory costs.
Q: How do you create an effective SKU naming convention?
Expected Answer: Should explain how to create logical, easy-to-understand codes that include important product information like category, size, color, etc., while keeping them concise. Should mention the importance of consistency and scalability.
Q: What metrics do you use to track SKU performance?
Expected Answer: Should mention key metrics like turnover rate, profit margin, stock days, reorder points, and sales velocity. Should be able to explain how these metrics help in making inventory decisions.
Q: What is a SKU and why is it important?
Expected Answer: Should explain that SKUs are unique identifiers for specific product variations, and why they're essential for tracking inventory, processing orders, and managing stock levels accurately.
Q: How do you handle basic inventory discrepancies?
Expected Answer: Should describe the process of conducting inventory counts, reconciling differences between system and physical counts, and basic troubleshooting of inventory issues.