The term SKU (Stock Keeping Unit) pertains to a product and identifies the most detailed disaggregate description of the product. An SKU will correspond to detailed and specific product descriptions, and you are able to to freely exchange two product items with the same SKU identification without any issue.
The reason that SKUs are so important is simply due to the fact that they aid with inventory management and control with ease. It allows warehouses to be able to determine what products are in the warehouse, where they are located, and ultimately when they are fulfilling an order and are transported out of the warehouse. Essentially, it makes tracking mountains of products much easier. As businesses record historical data on the SKU level, any good inventory forecasting software solution will be based on the analysis of past sales data on a similar level. They will usually conduct forecasting on an SKU level too. This method of producing inventory forecasts has some advantages as well, considering that it usually is more precise for aggregate forecasted demand. When attempting to implement a solid SKU plan into your business, there are many benefits that need to be considered as well.
The benefits pertaining to implementing a solid SKU plan into your business include the following:
A software that can aid with your product process and the flow of product throughout your warehouse includes PlanetTogether’s Advanced Planning and Scheduling (APS) Software. Advanced Planning and Scheduling (APS) Software allows manufacturers to be able to establish thorough insight into their operation and locate any areas that are in need of efficiency enhancement, cost reduction, or profit increase. APS Software is a must for modern-day manufacturing facilities seeking to maintain a competitive edge within their industry.
Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.
Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.