- 1). Determine the exact number of digits or letters you want your business to use in its SKUs. The number of digits must be enough to adequately represent each unique item for sale. For example, a small art gallery with an inventory of 50 to 75 paintings will need only three to five numbers to account for the current selection and future growth. A hardware store, on the other hand, may need eight to 10 digits or more to account for the possible number of items available.
- 2). Establish whether any series of letters or numbers used will have particular meaning. For example, a consignment clothing shop owner may assign eight-digit SKUs with the first three letters always representing the initials of the person who is placing the item up for sale.
- 3). Set a standard placement on your products for the SKU number. If each product for sale has a UPC symbol, clerks and cashiers will know to look for that barcode when searching for the SKU.
- 4). Create a spreadsheet, either handwritten on a ledger or with computer software, for tracking purposes. Format columns to include, at a minimum, product name and description, SKU, quantity in inventory and price. Enter the relevant data.
- 5). Print labels or stickers with the adopted SKU numbers for placement on the products in the designated locations.
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