Effective SKU Naming for Warehouse Management

Optimising SKU Codes for Warehouse Efficiency

Effective SKU Naming for Warehouse Management
SKUS

Background
Designing a good naming convention for your warehouses’ SKUs is essential for efficient inventory management.

The Benefit
A good SKU naming convention enhances inventory management, reduces errors, streamlines operations, supports scalability, and improves customer service through consistent and efficient product identification.

Core SKU Design Principles

Core SKU Design Principles
Core SKU Design Principles Core SKU Design Principles Core SKU Design Principles
Consistency: Ensure that the naming convention is applied consistently across all products.
Simplicity: Keep it simple and avoid special characters or spaces. Use only alphanumeric characters.
Descriptive: Make the SKUs descriptive enough to provide essential information about the product.

SKU Structure and Scalability

SKU Structure and Scalability
SKU Structure and Scalability SKU Structure and Scalability SKU Structure and Scalability
Length: Keep the SKUs short but informative. Typically, 8-12 characters is ideal.
Scalability: Design the system to accommodate future products and variations.
Category Code: Use 2-3 letters to represent the product category (e.g., "ELE" for electronics).

SKU Components

SKU Components
SKU Components SKU Components SKU Components
Category Code: Use 2-3 letters to represent the product category (e.g., “ELE” for electronics).
Sub-category Code: Use another 2-3 letters for sub-categories if necessary (e.g., “PH” for phones).
Product Identifier: Use 3-4 digits/letters to uniquely identify the product (e.g., model number or a unique sequence).
Variant Code: Use 1-2 characters to indicate product variants like size, colour, or material (e.g., “BL” for black, “LG” for large).

Example Structure

Example Structure
Example Structure Example Structure Example Structure
Format: [Category]-[Sub-category]-[Product ID]-[Variant]
Example: ELE-PH-1234-BL (Electronics, Phone, Model 1234, Black)

Steps to Implement

Steps to Implement
Steps to Implement
Define Categories and Sub-categories: List all product categories and sub-categories.
Create a Unique Product Identifier: Assign a unique identifier for each product.
Specify Variant Codes: Define codes for common variants.
Document the Convention: Create a reference document for your team to ensure consistency.
Integrate with Inventory System: Ensure the SKU format is compatible with your ERP and warehouse management systems.
Conclusion
By following these guidelines, you can create a robust SKU naming convention that enhances inventory tracking and management.