Proven Guide Lines To Create Inventory Codes (SKU / Barcode)

If your company is managing inventories, you know how hard it is. And most of the issues are due to the lack of a good naming standard. Here are few tips that can be enforced as a standard for inventory coding. Rules are for good, isn’t it?

1. Unless you are forced to do so by something out of your control, never start an item number with a zero.
2. Avoid using letters that can be confused with numbers. The main culprits are O, I, and L. But you can overcome this with selecting a font having slashed zero like ‘Terminal’.
3. DO NOT use a manufacturer’s serial number or part number for your inventory. These numbers are often too long and cryptic. Plus, if you switch suppliers, or the manufacturer changes their number, it becomes meaningless to your organization.
4. Keep item numbers short, but not so short that they could be mistaken for other numbers (i.e., quantities). 4 to 8 characters will suffice for most organizations. Use at least 4 characters, because some barcode readers need that. Some softwares like Flaps Sales allow you to use the SKU itself as barcode, which is very helpful, that you don’t have to generate another set of unique codes for barcode. In that case keep an eye on the number of characters.
5. Do not load item numbers with meaning; do not try to use the item number to describe your product. This will only make your numbers longer and more complicated. Save this information for the item description.
6. Consider using a few letters. Letters will help further distinguish your item numbers from other numbers, and they will greatly increase the number of possible items you can have while keeping the overall item characters length as short as possible.
7. Using a few letters from the beginning of your item description at the start of your part number will make it much easier to look up items in pick lists. For example, if you were creating an item number for “Sauce, Chocolate”, you might create the number “SAU101”, “Sauce, Caramel” would be “SAU102”, etc.
8. Do not use characters that might confuse people or software. For example, using a comma in your item number might make it look like a quantity or price. Using a “/” can result in Excel formatting your part number as a date. Symbols such as “<“, “>”, and “*” can have unintended consequences when moving data between Inventory Software and your spreadsheet program. Try to keep your item numbers simple and alphanumeric where possible and not to use any special character at all.
9. Last but not least, the coding structure should be in ‘reverse context’, like <genric-name><brand><varient>.

Some sample descriptions and codes below :

• Gillette Fusion Manual Shaving Razor Blades – RBG001 <RazorBladeGillette001>
• Gillette Mach 3 Manual Shaving Razor Blades – RBG002
• Gillette Fusion Manual Razor – RFG001
• WOW Raw Apple Cider Vinegar – 750 ml – VAW750 <VinegarAppleVow750ml>
• WOW Raw Apple Cider Vinegar – 500 ml – VAW550
• Natura Apple Cider Vinegar – 750 ml – VAN750
• Tata Tea Gold, 500g – TTG500 <TeaTataGold500g>
• Tata Coffee Grand Pouch, 50g – CTG50