A SKU (Stock Keeping Unit) or product code is a unique number that refers to one specific product. You can create your own SKU structure, but it’s to have a logical structure behind the product codes. You could take the easy option and start a product code with A000001, followed by A000002. This kind of product code only shows a sequence number but there are many reasons put some logic in the product codes.
The most common is to take ranges, where product group, brand, color and size can be identified in the product code. For example: Carrefour sells pants with KL.BR.0001.04.BL as the product code.
- 2 letters for the main group = KL (clothing)
- 2 letters for the subgroup = BR (pants)
- 4 digits for the product = 0001
- 2 digits for the size = 04 (Large)
- 2 letters for the color = BL (blue)
By creating logical product codes, your employees will start to recognize the product codes faster and work more efficiently. Of course, you must make it clear to your employees that the size is represented by numbers and that 04 stands for Large. In doing so, keep in mind the possible extensions to your range. Suppose you work with 01, 02, 03, etc. for your products, the chances are very good that after a while you will run out of product codes to provide new products with a product code. In that case, it is better to add some zeros, for example 0001, 0002, 0003, etc. This way you can add 9999 products instead of 99 products.
Want to know more about product codes? Then check out our blog ‘The importance of product codes in a warehouse’
Also, at all times avoid spaces, special characters, commas, semicolons, etc... in the SKU. In many systems, this can cause problems, and it also does not improve readability.