SKU Visibility

What is the definition of SKU Visibility?

"SKU Visibility" refers to the ability to track and monitor the status of a specific Stock Keeping Unit (SKU) throughout its lifecycle. This includes its existence in inventory, movement through the supply chain, and final delivery to the customer. It's an essential aspect of effective inventory management, enabling businesses to optimize stock levels, prevent stockouts or overstocking, and ensure timely and accurate order fulfillment.

How does SKU Visibility help businesses optimize stock levels?

SKU Visibility helps businesses optimize stock levels by providing real-time monitoring of inventory. With SKU Visibility, businesses can track the movement and availability of each SKU, enabling them to make informed decisions about inventory replenishment. By having visibility into the stock levels of each SKU, businesses can avoid overstocking and prevent stockouts, ensuring that they have the right quantity of each SKU to meet customer demand. This helps optimize inventory holding costs while ensuring the availability of products for customers.

When should businesses use SKU Visibility to prevent stockouts or overstocking?

Businesses should use SKU Visibility to prevent stockouts or overstocking at all times. By having real-time visibility into SKU availability and movement, businesses can proactively manage their inventory. This means they can identify when stock levels are running low and take action to replenish inventory before it leads to stockouts. Similarly, businesses can track the demand patterns of each SKU and adjust their inventory levels accordingly, avoiding overstocking situations that tie up capital and increase holding costs. SKU Visibility allows businesses to maintain optimal stock levels and prevent disruptions in their supply chain.

What is the function of SKU Visibility in the supply chain?

The function of SKU Visibility in the supply chain is to provide transparency and control over the movement of individual SKUs. By tracking each SKU's progress from supplier to customer delivery, businesses can identify bottlenecks, delays, or issues that may impact the overall supply chain performance. SKU Visibility enables businesses to effectively manage inventory replenishment, coordinate with suppliers, and streamline distribution processes. With this visibility, businesses can identify opportunities for process improvement, minimize lead times, and ensure efficient and reliable supply chain operations.

How does SKU Visibility ensure timely and accurate order fulfillment?

SKU Visibility ensures timely and accurate order fulfillment by allowing businesses to monitor the availability and location of each SKU in real-time. With this visibility, businesses can accurately assess whether they have sufficient inventory to fulfill customer orders. They can identify the nearest location where the SKU is available and optimize fulfillment by selecting the most efficient time and method of delivery. SKU Visibility also enables businesses to address potential issues or delays in the supply chain promptly, preventing order fulfillment delays. By ensuring that the right SKU is in the right place at the right time, SKU Visibility enhances order accuracy, customer satisfaction, and overall operational efficiency.