A stock-keeping unit, often known as an SKU code, is an alphanumeric identifier that uniquely identifies a product and allows you to keep track of inventory for your retail firm more efficiently. SKU numbers may be generated manually via the use of inventory management software or through the use of point-of-sale (POS) software.
But how do you create product codes, and what is a product code builder? We will tell you everything in this article!
Structure Of A FDA Product Code
This component’s Industry Code consists of two integers ranging from “02” to “98.” The most general category under which a product may be classified is deduced using an industry code. Some examples are dentistry, which encompasses all dental-related medical equipment, and fishery/food, which refers to things connected to fish and seafood.
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- Class Code: This component consists of a single letter (a-z) linked to a particular business sector. It specifies the food group, the source, the product, the usage, the pharmacological activity, the category, or the animal species that the product pertains. A class is a more detailed designation than an industry code; for instance, the industry that deals with fisheries and seafood items can include courses such as “hot-smoked fish” or “crustaceans.”
- Subclass Code: This element consists of a single letter (a-z) and specifies the kind of container, method of application, usage, market class, or material that the product is packed in is being packaged in. The principal material that comes into touch with the product and is used to hold it should be specified in the subclass. The subclass codes for medical equipment are not used; instead, they are represented by a hyphen.
- Process Indicator Code: PIC stands for “process indicator code,” an element consisting of a single letter (a-z). Depending on the product, it may represent the process, storage, or dose form. Contact the manufacturer for instructions. Items for human or animal use denoted by hyphens include medical equipment, cosmetics, and other products.
- Product (Group): This element has a length of two characters and may be composed of either letters or digits. It is referred to as the Product Group. When combined with the class element, a medical device’s product (group) element consists of two letters and is used to identify a medical device. This element is referred to as a “group.”
Benefits Of Using Product Code Builder
Enhanced Shopping Experience
You can better map and arrange your business with SKU numbers, making it easier for customers and employees to locate the items they want. They also allow you to monitor items according to the item type, department, collection, or vendor, enabling you to conveniently arrange and discover things on the sales floor and in storage sections of your business.
Additionally, SKUs enhance store merchandising by providing customers with a welcoming and organized experience, ultimately increasing sales. If you do not have SKU numbers, you risk losing track of where things are located in your area, which may lead to confused employees, dissatisfied customers, and, worst of all, missed revenue.
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Checkout Assistance For Customers
A simplified stock-keeping unit (SKU) system makes customer service and checking out more efficient and less prone to errors. If you use a point-of-sale system like Square for Retail to track items using SKU numbers, you can be confident that your inventory and pricing will always be accurate.
When consumers check out, their purchases are rung up with the correct cost, and your available inventory is immediately lowered to match the number of products sold. In addition, if a client is having trouble locating a certain item, an SKU search conducted on your point-of-sale system may simply display the current stock status, assisting staff members in rapidly locating the item so they can complete the transaction.
How To Set Up SKU Using Product Code Builder
Now that you have understood SKU numbers let’s look at a fundamental framework consisting of five steps for generating them. When it comes to keeping track of your inventory, the basic structure is the same regardless of whether you use a manual system or a POS alternative. To build a system that caters to the specific requirements of your company, follow these steps:
- Each SKU must have a top-level identification comprised of the first two or three numbers or letters of its number. This may be a department, a shop category, or possibly a different retailer altogether. With this, you will be able to identify the top-level merchandising group and position of any product in your shop just by taking a quick look at its SKU number. If you have more than one business, you may also use this area to specify the location of each of those stores.
- It is beneficial to utilize the middle area of SKU numbers to assign unique qualities to your product. These features may be things like size, color, item type, or subcategory. When arranging the items you offer, assigning these features in a way that makes sense is crucial.
- Setting up a product line is simplified when sequential numbering, such as 001, 002, and 003, is used for the last series of an SKU number. This makes it easier to differentiate between older and newer goods in a product line and saves time. In addition, connecting the last digits of an SKU number to the product number of a particular provider might be helpful to in certain circumstances. But, again, you should utilize whatever makes the most sense in terms of logic for the things that you offer.
- You can generate your SKUs manually in notebooks or by using spreadsheets. Still, it is far simpler and more efficient to utilize a retail POS system that also includes inventory monitoring. You may build your SKUs manually in notebooks. A point-of-sale system (POS) like Square allows you to input as much or as little product data as you need for tracking purposes. If you have all this information, you may use a single streamlined system to manage your sales and keep track of your inventory. In addition, your list is automatically updated after each transaction, informing you of the quantities of each SKU number in your system.
- After you have inputted your SKU codes into your inventory management software, you will need to generate scannable copies of your SKUs, often known as barcodes, to include on the product labels you produce. You may use our barcode generator, located up top, to generate scannable codes, which you can then download and print off. This will make inventory counting and checkout at retail locations much simpler.