Understanding SKUs: Your Key to Inventory Control

October 26, 2022

Demystifying SKUs: Your Key to Inventory Control

Inventory management is the heart of a well-functioning warehouse, and at its core are SKUs, or Stock Keeping Units. If you're new to the warehousing world, or if you've ever wondered what SKUs are all about, you're in the right place. Let's embark on a journey to understand what SKUs are and why they matter. Welcome to SKU 101!

What's a SKU, Anyway?

At its simplest, a SKU (Stock Keeping Unit) is a unique code assigned to each product in your inventory. Think of it as the DNA of your products – each one has its own unique sequence. These codes are crucial because they help you keep track of and manage your inventory efficiently.

Why SKUs Are So Important

Now, let's dive into why SKUs are the unsung heroes of inventory management:

  • Organization: SKUs are the foundation of organization in your warehouse. They tell you exactly what a product is, where it's stored, and how many you have in stock.
  • Efficiency: With SKUs, you can say goodbye to endless searching. You can locate products quickly, saving time and effort.
  • Accuracy: SKUs reduce the chances of errors in your inventory. You'll always know what's in stock, which means less risk of overselling or running out of products.

Common Ways to Reference SKUs

SKUs can come in different forms, but a few common ways to reference them include:

Type Description
EAN EAN (European Article Number) is a global barcode standard used for identifying products. It's a 13-digit unique code assigned to each product.
GTIN GTIN (Global Trade Item Number) is another unique product identifier often used in barcodes worldwide. It can be either a 12 or 14-digit number.
Custom SKU Many businesses create their custom SKUs for internal use. These codes can consist of letters, numbers, or even symbols, offering flexibility in tracking products.

Creating Your Own SKU System

If you're considering establishing your SKU system, here are some tips to guide you:

  • Uniqueness: Ensure each SKU is unique to avoid confusion. No two products should have the same SKU.
  • Simplicity: While uniqueness is essential, keep your SKU system straightforward. Complicated systems can lead to errors and confusion.
  • Barcode Integration: Consider incorporating barcodes into your SKU system. Barcodes make scanning and tracking products a breeze, enhancing accuracy and efficiency.

SKUs and D2X: A Perfect Match

If you're already using D2X as your Warehouse Management System, you're in good hands. D2X is designed to seamlessly handle SKUs, making your inventory management a breeze. It simplifies the process of assigning, tracking, and managing SKUs, ensuring you're in control of your inventory at all times.


Understanding SKUs is a fundamental aspect of efficient inventory management. With various referencing methods, including EANs, GTINs, and custom SKUs, you can easily identify, organize, and manage your products. Whether you're just starting your warehousing journey or looking to enhance your inventory management, D2X is here to assist you. Start utilizing SKUs and take charge of your warehouse today!