Recruiter's Glossary

Examples: 4PL • POD • Backorder

SKU

Term from Supply Chain Consulting industry explained for recruiters

SKU (Stock Keeping Unit) is a unique code or identifier used by businesses to track and manage their products in warehouses and stores. Think of it like a product's personal ID number - every different item, size, color, or variation gets its own SKU. For example, a medium blue t-shirt would have a different SKU than the same t-shirt in large red. Supply chain professionals use SKUs to keep track of inventory, plan orders, and analyze which products are selling well. When you see "SKU management" or "SKU rationalization" in job descriptions, it means working with these product codes to make smart decisions about what to stock and how to organize inventory.

Examples in Resumes

Reduced inventory costs by 30% through SKU rationalization project

Managed over 10,000 active SKUs across multiple warehouse locations

Led SKU optimization initiative resulting in improved stock turnover

Implemented new Stock Keeping Unit tracking system for retail chain

Typical job title: "Supply Chain Analysts"

Also try searching for:

Inventory Manager Supply Chain Manager Product Manager Inventory Analyst Supply Chain Consultant Demand Planner Category Manager

Where to Find Supply Chain Analysts

Professional Organizations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you approach SKU rationalization for a company with declining profits?

Expected Answer: A senior professional should explain the process of analyzing product performance, identifying slow-moving items, evaluating the cost-benefit of maintaining each product line, and making strategic decisions about which SKUs to keep or eliminate while considering customer needs and business impact.

Q: Describe a successful SKU optimization project you've led.

Expected Answer: Should demonstrate experience in managing large-scale inventory projects, including data analysis, stakeholder management, implementation strategy, and measurable results like cost savings or efficiency improvements.

Mid Level Questions

Q: How do you determine the optimal number of SKUs for a product category?

Expected Answer: Should explain factors like sales volume, profit margins, storage costs, customer demand, and market trends that influence SKU decisions.

Q: What metrics do you use to evaluate SKU performance?

Expected Answer: Should discuss key performance indicators like inventory turnover, days of supply, profit margins, and sales velocity in evaluating product performance.

Junior Level Questions

Q: What is a SKU and why is it important in inventory management?

Expected Answer: Should explain that SKUs are unique identifiers for tracking different product variations and their importance in managing inventory, ordering, and sales analysis.

Q: How would you organize and track SKUs in a warehouse?

Expected Answer: Should demonstrate basic understanding of inventory management systems, naming conventions for SKUs, and basic warehouse organization principles.