What Is the Difference Between a SKU & UPC Code?

Having a well-managed inventory is essential for any business, whether it’s a small retail shop or a large corporation. To easily track your products and keep your inventory organized, you need to use unique identifiers such as a SKU and UPC. These codes provide important information about your products and are used to distinguish them from one another. Although they serve a similar purpose, there are some key differences between SKUs and UPCs. While both of them are important for inventory management, knowing the difference between the two can help you make better decisions for your business, streamline shipments, and improve communication with manufacturers and retailers. In this blog, we will discuss what SKUs and UPCs are, how they can help manage your inventory, and what the main differences between them are.

Contact our team at Xpressman Trucking & Courier to learn more about commercial shipping and how to improve your operations.

What Is the Best Way to Name & Organize Inventory?

When it comes to managing your inventory, having a proper naming and organizing system is crucial. Not only does it make it easier for you to find and track products, but it also ensures that your team members and suppliers understand the information associated with each product. Giving each of your items a unique identifier, such as a SKU or UPC, is the first step in organizing your inventory. Rather than using a generic product name or number, creating a unique code for each item can significantly improve your inventory management process.

What Is a SKU?

Also known as a Stock Keeping Unit, a SKU is a unique code used to track and manage inventory. It typically consists of 8-12 letters or numbers and is created by the seller to identify each individual product. SKUs are often used for internal purposes, such as tracking inventory levels, managing stock across multiple locations, and analyzing sales data.

What Should a SKU Include?

A SKU can include a variety of information, depending on the needs of your business. Some common elements that are included in SKUs are:

• Product category or type
• Product size, color, or variation
• Brand name
• Supplier code or manufacturer number

One example of a SKU for a paper product could be PAP001-WHT-500-AV. This code includes the product category (paper), size (500 sheets), color (white), and brand (AV).

How to Create Effective SKUs

When creating SKUs, it’s essential to keep them as simple and consistent as possible. Avoid using too many special characters or abbreviations that may be confusing. It’s also crucial to have a standardized format for all your SKUs, so they are easy to understand and track by everyone in your organization. Each category should have a similar format, making it easier to sort and organize products within your inventory system. For example, if you own a gift store, you could begin each SKU with CAN for all candles and JWL for all jewelry items.

In addition to creating a unique code, it’s essential to regularly review and update your SKUs as your business grows and changes. This may include adding new categories or variations of products, adjusting prices, or discontinuing certain items. Regular maintenance will ensure that your inventory management system remains accurate and efficient.

What Is a UPC?

A UPC (Universal Product Code) is a standardized barcode used to identify and track products. It consists of a series of 12 digits that uniquely identify a specific product, manufacturer, and package size. These codes are typically found on the packaging of retail products and can be scanned at checkout for pricing and inventory purposes. UPCs are essential for retailers as they provide accurate product information and allow for efficient tracking and restocking processes. They also benefit consumers by providing easy access to product details and pricing information.

How Can You Create a UPC?

To create a UPC, you will need to obtain a unique company prefix from GS1, the global organization responsible for managing UPCs. This prefix identifies your company as the manufacturer or seller of the product. You can then assign individual numbers to each product using this prefix and generate a barcode image using an online generator. Once you have your UPC, it can be printed onto product labels or packaging.

Are UPCs the Same as Barcode Numbers?

While UPCs are a type of barcode, not all barcodes are UPCs. In North America, the format of a UPC is standardized, but other countries may use different barcode formats. Additionally, there are specific guidelines and standards for UPCs that differ from those used for tracking and inventory purposes.

Should Each SKU Have Its Own UPC?

As mentioned above, SKUs and UPCs are unique identification numbers used for different purposes. Each item should have its own SKU and UPC to accurately track inventory and sales data. This also helps retailers differentiate between variations of a product, such as different sizes or colors.

Learn More About Commercial Inventory Management & Get a Free Quote on Warehousing & Pick-and-Pack Services in Massachusetts with Xpressman Trucking & Courier!

At Xpressman Trucking & Courier, we help businesses across all industries with their commercial inventory management needs. With our services, you can keep track of all your products and ensure timely delivery to customers. Our team is dedicated to providing efficient warehousing, pick-and-pack, and shipping services that meet the unique needs of your business. Whether you carry only 10 products or thousands, we have the expertise and resources to help you manage your inventory effectively. To learn more and get a free quote, submit an online request or call us at 781-836-4614.