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inventory-managementskuean-13

Meaning of SKU for inventory


A customer is asking for functionality to manage SKUs in his inventory. However, from what he has explained, I am seriously considering if I haven't fully understood the concept of SKUs myself.

Example: he sells one specific model of cell phones. This cell phone is identified with an EAN code (bar code). However, in November he receives this product, for example, in a Christmas packaging, and with a different EAN code. Since it is the exact same product for him in terms of cost, inventory and sales to customers, he says that he uses a SKU for both EAN codes.

Does this make sense? Is this really the use for SKUs?

Thanks so much for your help :-)


Solution

  • This makes since since that is the purpose of a Stock Keeping Unit. Consider selling the same product with different packagings, it will still be the same product.