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Inventory & AssetsAlso known as: Product Code, Article Code

SKU (Stock Keeping Unit)

A unique identifier assigned to each distinct product variant, every size, flavor, and pack-type combination is a separate SKU.

Full definition

SKU stands for Stock Keeping Unit, the smallest uniquely tracked unit in a product catalogue. Every distinct combination of product, size, pack type, flavour, and sometimes even color is a different SKU. A dairy brand selling 500 ml toned milk pouch, 1 L toned milk pouch, 500 ml full cream pouch, and 1 L full cream pouch has four SKUs, not one product.

SKU hygiene is make-or-break for distribution. A typical Indian FMCG distributor carries 200-600 active SKUs; a dairy distributor manages 50-200. Each SKU needs its own MRP, selling price, HSN code, GST rate, shelf life, and barcode. Sloppy SKU masters are the single biggest source of billing errors and scheme miscalculations.

Proper order management platforms treat the SKU master as a governed asset, only authorized users can add, retire, or change attributes, and every change is versioned for audit.

Real-world example

Amul Butter 100 g carton and Amul Butter 500 g carton are two different SKUs even though they are the same product.

See SKU (Stock Keeping Unit) in action

Start a free trial and watch how SpireStock turns sku (stock keeping unit) from a concept into a measurable, auditable workflow.