{"id":7388,"date":"2020-09-10T08:09:44","date_gmt":"2020-09-10T08:09:44","guid":{"rendered":"https:\/\/warehousing1.com\/blog\/?p=7388"},"modified":"2021-08-03T15:10:30","modified_gmt":"2021-08-03T15:10:30","slug":"sku-proliferation-wie-sich-mehr-produkte-auf-die-lagerlogistik-auswirken","status":"publish","type":"post","link":"https:\/\/warehousing1.com\/blog\/en\/sku-proliferation-wie-sich-mehr-produkte-auf-die-lagerlogistik-auswirken\/","title":{"rendered":"SKU proliferation - how to handle an increasing number of products effectively"},"content":{"rendered":"
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When a warehouse has to work with more and more SKUs, it can mean two things. On the one hand, the company has been successful and can afford to add more and more products to its inventory. On the other hand, it also means that all logistics processes become more complex as the acceptable minimum stock level is exceeded.<\/span><\/p>\n

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In such a situation it is important to keep a cool head by means of sophisticated inventory management. This, in turn, requires powerful and modern systems that can help you optimize and scale.<\/span><\/p>\n

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At Warehousing1, we have therefore provided you with an overview of the points you should consider when it comes to SKU proliferation in order to be prepared for all eventualities. <\/span>SKU proliferation – <\/span><\/i>The following table shows the SKUs that should be considered in order to be prepared for all eventualities.<\/span><\/p>\n

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SKU vs. EAN vs. UPC<\/b><\/h3>\n

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To call an SKU a barcode is actually wrong. Stock Keeping Units are combinations of letters and numbers between 8 and 12 digits. These are usually assigned by the ERP (Enterprise Resource Planning) system and reflect product information such as colour, size or storage location. The SKUs are then in turn entered into the WMS (warehouse management system), which bases the planning of the warehousing processes on them. This enables efficient and, above all, time-saving handling of the goods.\u00a0<\/span><\/p>\n

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In practice, however, SKU codes are often confused with regular barcodes such as EAN (European Article Number) or UPC (Universal Product Code). No wonder - because the warehouse clerk can scan all of these codes. Unlike EANs or UPCs, a SKU is a warehouse-specific, alphanumeric code. This means that the same product in another warehouse can also be labelled with a different SKU.\u00a0<\/span><\/p>\n

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Learning to understand the value of SKUs<\/b><\/h3>\n

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A simple rule of thumb - the so-called pareto-principle<\/a>\u00a0 or the 80\/20 rule - says that only 20% of your SKUs account for 80% of your sales. The 80% that remain on the shelves for a disproportionate amount of time have a direct impact on your company's performance. In addition to that, these \u201cslow movers\" among SKUs also demand more storage space, which effectively leads to higher storage costs. Another point is that more SKUs also result in a slower picking process.<\/span><\/p>\n

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Taking a closer look at your own in-store SKUs can first of all lead to a better understanding of your company's product situation. In an effective analysis, consider the following points:<\/span><\/p>\n