The SkuCount measure calculates the total number of unique SKUs (Stock Keeping Units) present in the line items of orders during a specified time period. This metric is essential for understanding the diversity of products being ordered and provides insights into inventory utilization.
Why It Matters
- Inventory Insights:
Tracks how many unique products (identified by SKU) are contributing to orders. - Product Portfolio Usage:
Highlights which parts of the catalog are active, helping identify underutilized products. - Operational Efficiency:
Assists in determining whether the number of SKUs aligns with customer demand and operational capacity.
Key Characteristics
- Based on Orders:
Only counts SKUs that appear in orders within the specified period. Products not included in orders are not counted. - Distinct Calculation:
Each unique SKU is counted only once, regardless of the quantity ordered.
Examples
- Scenario 1:
If an order contains three line items with SKUs “A123”, “B456”, and “A123”, the SkuCount for that order is 2 (distinct SKUs: “A123” and “B456”). - Scenario 2:
For a weekly report, the SkuCount might reveal that 500 unique SKUs were included in orders. This can indicate the breadth of catalog usage during that period.
How It Helps Merchants
- Product Utilization:
Understand which products are being actively ordered and assess catalog performance. - Demand Planning:
Align inventory levels with the diversity of products customers are purchasing. - Product Lifecycle Management:
Identify SKUs with no activity to consider discontinuing or repositioning them.
Complementary Measures
- LineValue:
Provides the revenue generated by the ordered SKUs. - OrderedQuantity:
Tracks the total quantity of SKUs ordered, complementing the count of unique SKUs. - NewProductCount:
Focuses on newly introduced products to assess their contribution relative to the full catalog.
Use Case: Diversification Analysis
A merchant with a large catalog can use SkuCount to evaluate whether customers are engaging with a broad range of products or concentrating on a few popular items. This insight helps refine marketing strategies, optimize inventory, and improve customer engagement with underrepresented products.
Takeaway
SkuCount is a straightforward yet powerful metric for analyzing product diversity within orders. It supports data-driven decisions related to inventory, product strategy, and operational efficiency, ensuring that merchants can adapt to customer demand effectively.