Stock Keeping Unit (SKU) Analysis

Stock Keeping Unit (SKU) Analysis is like taking attendance for all the products a store has on its shelves. Each SKU is a unique code that identifies a specific item, down to its size, color, or flavor. In business intelligence and data analytics, SKU Analysis means tracking these codes to see how each individual product is performing. Think of it as a report card that tells a business which items are the star students, flying off the shelves, and which ones are barely making the grade.

Businesses use SKU Analysis to make smart decisions about what to stock. For example, if a particular SKU is selling out fast, they know to order more of that item. But if another SKU hasn’t been purchased in months, they might decide to stop stocking it or put it on sale to clear out the space. This level of detail helps companies avoid overstocking, which can tie up their cash, or understocking, which can lead to missed sales.

SKU Analysis helps businesses stay lean and competitive, ensuring they’ve got just the right amount of inventory to meet customer demand. It’s about having a clear picture of what’s hot and what’s not, so they can adjust quickly and keep their customers happy without wasting resources.