SKU (Stock Keeping Unit) is a unique code or number used in retail and inventory management to track and identify specific products. Think of it as a product's fingerprint - each variation of a product (size, color, style) has its own SKU. For example, a blue shirt in size medium would have a different SKU than the same shirt in red or in size large. Retail workers use SKUs daily to check stock levels, process sales, handle inventory, and manage product ordering. Similar terms include UPC (Universal Product Code) or Product ID, but SKU is specific to internal company use for inventory tracking.
Managed inventory system of 10,000+ SKUs across multiple store locations
Reduced inventory costs by optimizing SKU management and stock levels
Implemented new SKU tracking system that improved accuracy by 95%
Typical job title: "Inventory Managers"
Also try searching for:
Q: How would you handle SKU rationalization for a large retail chain?
Expected Answer: A strong answer should discuss methods for analyzing product performance, deciding which SKUs to keep or remove, and how to maintain profit while reducing inventory complexity. They should mention considering sales data, profit margins, and customer demand.
Q: How would you develop a SKU management strategy for a multi-location retail business?
Expected Answer: Look for answers that cover inventory tracking across locations, how to optimize stock levels, systems for tracking SKU performance, and strategies for managing seasonal variations in demand.
Q: What factors do you consider when creating new SKUs for products?
Expected Answer: Should discuss logical naming conventions, consideration of product variants (size, color, style), and how to maintain organized inventory systems that make sense for staff and systems.
Q: How do you use SKU data to make inventory decisions?
Expected Answer: Should explain how they analyze sales patterns, use SKU data to prevent stockouts, manage reorder points, and make decisions about which products to stock more or less of.
Q: What is a SKU and why is it important in retail?
Expected Answer: Should explain that SKUs are unique identifiers for tracking specific products and variants, and why they're essential for inventory management and sales tracking.
Q: How do you ensure accuracy when working with SKUs?
Expected Answer: Should mention double-checking numbers, following established naming conventions, and using scanners or other tools to reduce human error in SKU entry and management.