A Stock Keeping Unit (SKU) is a unique identifier assigned to a specific product or item in inventory management. It helps businesses track stock levels, sales, and product variations, such as size or color. Each SKU is typically represented by a combination of letters and numbers, making it easy to distinguish between different products. SKUs are essential for retailers and warehouses, as they streamline the process of managing inventory. By using SKUs, businesses can quickly locate items, analyze sales trends, and optimize restocking efforts, ultimately improving efficiency and customer satisfaction in the supply chain.