What is a SKU (Stock Keeping Unit)?

A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned to an item to identify its specific characteristics, such as manufacturer, part type, size, and material. In industrial environments, a SKU serves as the foundational data point for tracking MRO (Maintenance, Repair, and Operations) inventory, allowing facilities to manage stock levels with precision.

The Logic of Industrial SKU Architecture

Unlike a universal barcode or a Manufacturer Part Number (MPN), a SKU is internal to your organization. Effective SKU architecture follows a "logic-first" hierarchy that allows a maintenance manager to identify a part’s function and location without consulting a manual. For example, a SKU for a specific bearing might be structured as BRG-RLR-005-SKF, where the segments represent the category (Bearing), sub-type (Roller), size (005), and manufacturer (SKF).

In the 2026 industrial landscape, SKU architecture is no longer just about counting boxes; it is about data interoperability. A well-structured SKU system integrates directly with your Bill of Materials (BOM) to ensure that when a work order is generated, the exact technical specifications are communicated to the procurement team. This reduces "search time" for technicians and prevents the common pitfall of ordering similar but incompatible components.

Why SKUs Matter in Maintenance and Manufacturing

For industrial decision-makers, the meaning of a SKU extends into financial and operational health. SKUs are the primary metrics used to calculate the Inventory Turnover Ratio and determine Economic Order Quantity (EOQ). Without granular SKU tracking, facilities often suffer from "ghost inventory"—items that exist in the system but cannot be found on the shelf—or "dark stock," which is inventory that has become obsolete but continues to incur carrying costs.

By utilizing SKUs within a centralized system, facilities can achieve:

• Lead Time Optimization: Tracking SKU-specific movement helps predict when to reorder parts before a critical failure occurs.
• Safety Stock Accuracy: Maintaining the right buffer for high-criticality SKUs ensures that "Line Down" situations are minimized.
• Asset Lifecycle Management: Linking SKUs to specific assets allows managers to track the total cost of ownership (TCO) by seeing exactly how many parts a specific machine consumes over time.

According to the National Institute of Standards and Technology (NIST), standardized data practices in manufacturing are essential for the transition to smart factory environments. Implementing a robust SKU system is the first step toward that digital transformation.

Learn more

To deepen your understanding of how SKUs integrate with broader maintenance strategies, explore these detailed guides:

• Optimize your spare parts tracking with advanced inventory management features.
• See how SKUs link directly to your equipment via asset management protocols.
• Streamline your repair workflows by integrating SKU data into work order software.
• Centralize your entire MRO database using a modern CMMS software platform.

Related Terms

• Manufacturer Part Number (MPN): A unique identifier assigned by the producer of the part. While a SKU is internal to your facility, the MPN is universal across all buyers.
• Bill of Materials (BOM): A comprehensive list of every SKU required to build, maintain, or repair a specific piece of equipment.