In the footwear industry, SKU (Stock Keeping Unit) plays a vital role in product identification, inventory tracking and sales management. Each SKU represents a unique product variant defined by key attributes such as style, color, size, material and gender. Effective SKU creation and management ensure operational efficiency, minimize stock errors and enhance business decision-making.
# How to create an SKU
A footwear SKU is a unique numeric/alphanumeric code that differentiates one product from another based on its characteristics.
Here, I'll discuss about an alphanumeric(10 characters) Footwear SKU Creation. Each number in the SKU represents a specific product attribute such as category, gender, material, color, size or season.
Example SKU: 2125S56142
Ct T M Y St C Sz
2 1 2 5 S56 1 42
Here,
Ct= Category(1 digit)
T=Type(1 digit)
M=Material(1 digit)
Y=Year(1 digit)
St=Style (S and 2 digits)
C=Color (1 digit)
Sz=Size(2digits, Paris point)
Now, lets decode the digits of SKU 2125S56142
2(Ct)→ Men ( 1=Ladies, 2=Men, 3=Kids...)
1(T) →Sandal( 1=sandal, 2=Close Shoe, 3= Sports shoe...)
2(M) →Leather ( 2=Leather, 1=PU, 3=PVC...)
5(Y) → Year 2025 (5=2025, 6=2026,7=2027,....)
S56(St)→Style No.( You can create 99 styles here)
1(C)→ Black( 1=Black, 2=Brown, 3= D.Brown......)
42 → Size 42
So, 21025S56142 Means men’s black leather sandal of year 2025, Style no. 56, size 42.
# Key Benefits of SKU
~Easy to decode product details from numbers
~Ensures uniqueness across all SKUs
~Simplifies barcode integration and ERP entry
~Reduces human error in warehouse and retail operations
~Clear format ensures smooth communication between design, production, retail, and logistics teams.
# SKU Management Process
Effective SKU management involves continuous coordination among departments-
~Inventory Control: Tra cks stock levels, reorder points, and slow-moving items.
~Retail Operations: Uses SKUs for pricing, tagging, and POS systems.
~Data Analysis: Monitors SKU-wise sales to identify bestsellers and dead stock.
#Importance of Efficient SKU Management
~Accurate Stock Control: Prevents overstocking or stockouts.
~Sales Insights: Enables SKU-level sales and profitability tracking.
~Operational Efficiency: Simplifies warehouse management and barcode labeling.
~Forecasting Support: Helps in planning future production and replenishment.
# Best Practices
~Maintain a centralized SKU database across departments.
~Avoid duplicate or inconsistent codes.
~Periodically review and deactivate obsolete SKUs.
~Integrate SKU data with ERP or inventory management software.
~Keep the code short, logical, and scalable for future expansions.


