Sku Count

Sku Count

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

  1. Inventory Insights:
    Tracks how many unique products (identified by SKU) are contributing to orders.
  2. Product Portfolio Usage:
    Highlights which parts of the catalog are active, helping identify underutilized products.
  3. 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

  1. Product Utilization:
    Understand which products are being actively ordered and assess catalog performance.
  2. Demand Planning:
    Align inventory levels with the diversity of products customers are purchasing.
  3. 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.

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