Stock Keeping Unit (SKU)

A Stock Keeping Unit (SKU) is a unique alphanumeric identifier assigned to a specific product variant — defined by its type, size, colour, packaging, or other distinguishing attribute — used by retailers, manufacturers, and distributors for inventory tracking, stock management, sales analysis, and order fulfilment across supply chain and point-of-sale systems. Each distinct product variation has a unique SKU, enabling precise inventory monitoring and preventing confusion between similar items. For equity analysts and investors on Ventura Securities covering retail, FMCG, e-commerce, pharmaceuticals, and consumer goods companies, SKU count, SKU rationalisation exercises, and new SKU launches are important operational metrics — a rapidly expanding SKU count may signal product proliferation and inventory complexity, while a focused SKU rationalisation drive may improve margins, working capital efficiency, and supply chain performance, all of which flow through to earnings quality and return on capital.