Resources
Industries
Company
Solutions
Track business performance against key competitors at every stage of the product lifecycle.
SOLUTIONS
We help our clients accelerate demand by focusing on the best opportunities for the greatest impact on their business.
SOLUTIONS
Our Liquid Data® technology provides cross-industry data and advanced analytics in a single, open platform.
SOLUTIONS
Suggested solutions
TERM
SKU (Stock Keeping Unit)
A code a manufacturer uses to identify one item in its product lineup.
Definition
A SKU is a unique identifier assigned to a product based on its specific attributes. It helps the manufacturer track production, inventory, shipments, and sales performance. Each SKU represents one item with a defined set of characteristics such as flavor, size, packaging, or count.
How to Calculate
A SKU is an internal code you create using your own naming rules. Most CPG teams build SKUs from a consistent pattern that combines short identifiers for the product family and key item attributes such as flavor, size, pack count, and pack type. Use letters and numbers only, keep the structure consistent across the portfolio and make sure each SKU is unique.
Why it Matters
It helps manufacturers track how each item contributes to volume, costs, and service levels. It also supports better planning across production, inventory, and distribution, which leads to fewer interruptions and more efficient use of resources. If any of these characteristics change, the manufacturer creates a different SKU.
Key Advantages
It gives manufacturers a reliable way to track each item on its own, which improves forecasting and inventory control and helps identify which products deserve more production focus and which add limited value to the portfolio.
Example
If you produce a ready‑to‑drink iced tea, the lemon bottle and the peach bottle each need their own SKU because the flavor is different. For instance, you could assign codes like 12045‑LEM and 12045‑PCH to show they are two separate items in your product lineup.
Use it to
Understand how each item behaves across production, inventory, and sales so you can plan more accurately, reduce waste, and ensure the right products are available in the right places.
