A SKU-based inventory audit is a comprehensive evaluation of a company's stock levels based on individual Stock Keeping Units (SKUs). By tracking inventory at the SKU level, businesses can accurately monitor the movement and performance of each unique product or variation. Regularly conducting SKU-based audits enables companies to identify fast-selling items, reduce the risk of stockouts, and optimize inventory turnover. Additionally, it helps in pinpointing slow-moving or obsolete products, allowing businesses to make informed decisions about promotions, markdowns, or discontinuation. This granular approach to inventory management leads to enhanced efficiency, increased customer satisfaction, and ultimately, higher profitability.