What is an Item Number or SKU Number?

SKU or Item

If you are a distributor, manufacturer, or even a service provider, you have probably heard of an “Item Number” and “SKU Number”. These unique identifiers play a crucial role in organizing products, tracking inventory, and streamlining business operations. But what exactly are they, and what types of items do they categorize? This blog will delve into the specifics of Item Numbers and SKU Numbers, explaining their significance and the various types of items they can classify. We will also highlight the importance of SKU and Item Numbers for distribution and manufacturing, and how Kechie Inventory Management Software can efficiently manage these for your business.

Item Number or SKU Number, what are they?

An Item Number, also known as a Stock Keeping Unit (SKU) Number, is a unique identifier assigned to each product in a retailer’s inventory. This alphanumeric code helps businesses track and manage their inventory efficiently. By using SKU Numbers, companies can quickly locate items, track stock levels, and streamline the reordering process.

The Importance of Item Numbers and SKU Numbers

  • Inventory Management: Item Numbers help in maintaining accurate inventory levels, preventing overstocking or stockouts.
  • Sales Tracking: SKUs allow businesses to monitor sales patterns and identify popular products.
  • Efficiency: These identifiers enhance operational efficiency by simplifying the sorting and locating of products.
  • Customer Experience: Accurate inventory management leads to better customer satisfaction by ensuring product availability.

Types of Items Classified by SKU Numbers

1. Consumer Goods

Consumer goods encompass a wide range of products, including electronics, clothing, food items, and household goods. Each item in this category has a unique SKU to distinguish it from similar products.

2. Raw Materials

Raw materials used in manufacturing are also assigned SKU Numbers. These can include metals, plastics, fabrics, and other essential materials needed for production.

3. Components and Parts

For businesses dealing with machinery, electronics, or vehicles, components and parts are crucial. Each part, no matter how small, is given an SKU to ensure accurate tracking and inventory management.

4. Finished Goods

Finished goods are products that have completed the manufacturing process and are ready for sale. These items, ranging from furniture to packaged food products, are identified with specific SKUs to streamline sales and inventory control.

5. Services

Although not physical items, services can also be assigned SKU Numbers. For example, in a spa or salon, different services like massages, haircuts, or manicures can have unique SKUs for efficient booking and sales tracking.

6. Digital Products

Digital products such as software, eBooks, and online courses also use SKUs for inventory and sales management. Each digital product is given a unique identifier to simplify the sales process and customer access.

7. Consumable Products

Consumable products, such as cleaning supplies, toiletries, and food and beverage items, are typically used up and replaced regularly. Assigning SKUs to these items helps in tracking usage rates, managing reordering processes, and ensuring consistent availability.

How to Create Effective SKU Numbers

Creating effective SKU Numbers involves a systematic approach to ensure each code is unique and easily identifiable. Here are some tips for creating SKUs:

  • Consistency: Use a consistent format across all products.
  • Simplicity: Keep SKUs simple and avoid overly complex codes.
  • Relevance: Ensure the SKU includes relevant information, such as product type, size, and color.
  • Uniqueness: Each SKU should be unique to avoid confusion and errors in inventory management.

Kechie Inventory Management Software

Kechie Inventory Management Software can streamline the creation and management of all SKUs and items. This powerful tool offers an intuitive interface for generating unique SKUs, tracking inventory levels, and managing product details. The addition of  barcode capability further boosts efficiency and productivity, allowing for quick and accurate scanning of items reducing manual entry errors, and speeding up the inventory process. By Leveraging Kechie Inventory Management Software with barcode functionality, businesses can enhance their inventory control, improve overall efficiency, and free up valuable resources for other critical tasks.


Item Numbers and SKU Numbers are vital components of efficient inventory management and business operations. By understanding what they are and how to use them effectively, businesses can enhance their organizational processes, improve customer satisfaction, and streamline sales. Whether dealing with consumer goods, raw materials, consumable products, or digital products, assigning the right SKU to each item ensures accurate tracking and management.

Connect with us today, to learn more about how Kechie Solution has the tools for all  your business needs. Let our expert team  guide you through the process and help you discover the transformative potential of Kechie solutions.