CIPS Level 4 Diploma in Procurement and Supply L4M7 Question # 54 Topic 6 Discussion

Explanation

The product code is often the key to obtaining documentation relating to products.

Product codes are often use to link to internal processes. Some computerised inventory systems trigger alerts when specific items or volume are ordered - this could be an out-of-stock warning or potential volume errors.

In many cases, an organisation will use its own product code system. The organisation constructs a code that is effective and fits with its software and the variety of items covered. So these codes may or may not comply with any international standards (such as GS1 specifications, ISO standards, etc.). As organisations make up the code themselves, the codes may look identical to others. For example, SKU414675 reveals that it is used for many items, including the following:

- A UK wholesaler's six-pack of branded cola

- An Australian snack food

- UK flower seeds

- An Italian desk sold in Japan

- A Brazilian light fitting