SKU vs. Item-Level Data Visibility Why It Matters for End-to-End Trace

“RFID increases inventory accuracy, from an average of 65 percent to more than 95 percent. And high inventory accuracy can lead to increased sales—but only if retailers use the data to improve their operations and processes.” – Bill Hardgrave, Founder of Auburn University’s RFID La

To track inventory, there are currently two levels of data collection that supply chain managers can use:

• Stock keeping unit (SKU) data

• Item-level visibility data

SKUs remain industry standard. But as item-level visibility solutions enable organisations to meet more complex production, distribution, delivery and traceability demands, the lacking specificity of SKU level data is becoming obsolete.

SKU data leaves room for error, as it’s confined to product-wide tracking. As of 2022, the average supply chain accuracy of a U.S. retail operation is only 63%. (Zippia, 2022

What is Item-Level Data?

Real-time, item-level visibility (RTILV) enables retailers to monitor every unique item through every stage of the supply chain. Tracking at the item level is more granular than tracking at the product level.

Rather than having a catalog of stock keeping units corresponding to product varieties, all individual items have an electronic product code (EPC) that acts as a universal identifier. EPCs operate in conjunction with radio frequency identification (RFID) technology, which uses radio waves to read and transmit hundreds of signals at once.

Wirelessly gathered EPC data which is the Itemised electronic product codes from the RFID Tag.increase inventory transparency, improving accuracy by at least 63% (Auburn University RFID Lab, 2023). It ensures manufacturers, distribution centers, and retailers access real-time data for every physical item that passes through the supply chain, from source to destination.