A SKU is a finding tool. If only one person can decode it, it is not doing its job. A readable code makes the first count and every later search faster.
Use a short category prefix
Choose two or three letters for the category and keep them stable. A prefix helps people scan a shelf list without opening every item record.
Keep the sequence separate
Use a dash or fixed position for the sequence number. Avoid embedding supplier names, prices or dates that will change.
Record a location, not just a code
The SKU identifies the item; the location tells you where to find it. Put both on the record and on the shelf label.
Test it with someone else
Ask a colleague to find an item from the code alone. If they need a key, simplify the structure.
A simple SKU
| Item | Example |
|---|---|
| Category | BIN |
| Sequence | 001 |
| Readable code | BIN-001 |
| Location | Shelf A / Bin 3 |
What to watch for
- Using a different code on the shelf and in the sheet.
- Embedding a supplier name that later changes.
- Creating a code nobody outside the creator can read.
A useful next step
Write the pattern down and use it for the next ten items before adding complexity. A small consistent pattern beats a clever one nobody follows. If two items differ only by size, give them separate sequence numbers and put the size in the item name, not in a changing suffix. The SKU should stay stable when the packaging or supplier changes. Use the same sequence rule for every new item so the code remains predictable when a variant is added. Print the code rule and keep it beside the label printer.