"I'll have to redo all that product registration later": The most common failure in ERP implementation
Introduction
"Do we have this product in red, size M in stock?"
"What was the cost price again? I feel like it was different last time..."
"Was the sales price for that customer a special price?"
Has this kind of conversation become an everyday occurrence for you?
Even if you look at the Excel product list, you don't know which one is the latest.
Prices are also recorded inconsistently, so in the end, you can't get accurate information without asking someone.
This is a common occurrence for small and medium-sized enterprises, isn't it?
In the previous article, I talked about visualizing the flow of company money using an "Order Management ERP".
This time, I will talk as simply as possible about the foundation, "product registration".
Actually, even if you introduce an ERP, if you fail at the initial product registration, you might end up having to redo everything later...
That is why I will share the points you want to grasp from the beginning.
AI utilization x System development x Business improvement x PMO x IT revenue-generating consultants are currently sharing the reality from a field perspective.
What is an "SKU" in the first place? — The smallest unit of product management
What is an SKU?
When registering products in an ERP, the term "SKU" always comes up.
SKU stands for Stock Keeping Unit, and in Japanese, it is translated as "the smallest unit for inventory management".
Simply put, it is "the unit of the same product that cannot be divided any further".
Reference: Logi-Journal "What is an SKU? Explaining how to manage and set it up"
Let's look at a concrete example
For example, suppose you are selling T-shirts.
In other words, even if there is only one item called "Standard T-shirt," if there are 6 variations by color x size, it becomes "6 SKUs".
【SKUの数え方】
1アイテム × 2色（赤・青）× 3サイズ（S/M/L）＝ 6SKU
アパレルや雑貨を扱う企業では、
10,000〜100,000SKUを管理していることも珍しくありません。Why is SKU management important?
Why "We have T-shirts in stock" is a problem
Even if you say "We have T-shirts in stock," what the customer wants might be "a red size M."
If you don't manage by SKU...
You won't notice stockouts: You can't see the situation where "we have T-shirts, but only the red size M is out of stock"
Excess inventory occurs: Inventory piles up only with colors and sizes that don't sell
Ordering errors occur: Accidents like "I meant to order red, but ordered blue"
Reference: Nikken Lease "What is an SKU? Benefits of introducing it to an inventory management system"
It becomes the "source data" for data analysis
When you accumulate data by SKU, you can perform analyses like these.
Which colors and sizes are best-sellers
Seasonal sales trends
Which products have high gross profit margins
Which are dead stock (products that don't sell)
You will be able to build purchasing and sales strategies based on data rather than "intuition and experience."
Items to identify an SKU — What should you register?
Basic product information
When registering products in an ERP, these are the minimum required items.
Tips for creating SKU codes
The key to designing SKU codes is to make them "understandable just by looking at them."
【おすすめのSKUコード命名パターン】
パターン1：商品コード-色-サイズ
例）TS001-RED-M（Tシャツ001番・赤・Mサイズ）
パターン2：カテゴリ-ブランド-型番-バリエーション
例）TOP-ABC-V01-RM（トップス・ABCブランド・V01型・赤M）
パターン3：年-シーズン-品番-色-サイズ
例）25SS-001-BL-L（2025春夏・001番・青・Lサイズ）Points to note:
Do not use spaces or special characters (/ \ ' ")
Decide on rules first, as changing them later is difficult
Aligning with the shelf layout in the warehouse makes picking easier
Reference: SmartMat "What is the meaning and importance of SKU? Optimal management methods and points to note"
"Purchase price" is not just one — The complexity of cost management
Factors that change purchase prices
Even for the same product, the purchase price (purchase cost) is not constant.
Purchase price management in ERP
In ERP, to manage these complex purchase prices, a mechanism called "Condition Master" is used.
【仕入価格の管理例】
商品：定番Tシャツ（赤・M）
├── 仕入先A社：標準単価 1,000円
│ └── 100枚以上発注時：950円
├── 仕入先B社：標準単価 980円
│ └── 納期2週間以上：930円
└── 移動平均原価：987円（直近3ヶ月の平均）Key points:
Unit prices can be set for each supplier
Tiered pricing based on quantity (volume discounts) can also be set
Cost calculation methods such as moving average or FIFO can be selected
"Selling price" is not just one either — Practical pricing
Types of selling prices
In fact, there are many types of selling prices.
Selling price management in ERP
In ERP, these prices are managed by assigning priority levels.
【販売価格の優先順位（例）】
受注入力時に自動で価格が決定される順番：
1. 顧客別特別価格 → あればこれを適用
2. キャンペーン価格 → 期間内ならこれを適用
3. 数量割引価格 → 条件を満たせばこれを適用
4. 自社標準価格 → 上記がなければこれを適用
例）顧客A社から50枚の注文
→ 顧客別特別価格 1,400円が自動適用Reference: SAP SD Condition Master (Selling Price)
Overview of product master settings
List of items to register
When you organize the items to be registered in the product master, it looks something like this.
┌─────────────────────────────────────────────────────┐
│ 商品マスタの構成 │
├─────────────────────────────────────────────────────┤
│ 【基本情報】 │
│ ・SKUコード / 商品名 / カテゴリ │
│ ・色・サイズなどのバリエーション │
│ ・JANコード / 単位 / 重量・サイズ │
├─────────────────────────────────────────────────────┤
│ 【仕入情報】 │
│ ・仕入先（複数登録可） │
│ ・仕入単価（仕入先別・数量別） │
│ ・リードタイム（発注から納品までの日数） │
│ ・最小発注単位 │
├─────────────────────────────────────────────────────┤
│ 【販売情報】 │
│ ・標準販売価格 │
│ ・顧客別価格 / 数量別価格 │
│ ・キャンペーン価格（期間設定） │
├─────────────────────────────────────────────────────┤
│ 【在庫情報】 │
│ ・安全在庫数 / 発注点 │
│ ・保管場所（ロケーション） │
│ ・有効期限管理の有無 │
└─────────────────────────────────────────────────────┘Settings must be tailored to business operations
It is not necessary to use all of the items listed above.
It is important to select and configure the necessary items according to your company's business operations.
The product master becomes the source data for "cost analysis"
Why initial settings are important
The data registered in the product master will later become the"source data" for all analysis.
【商品マスタから生まれる分析データ】
商品マスタ（SKU単位）
↓
受注データ × 商品マスタ → 売上分析（何が売れているか）
仕入データ × 商品マスタ → 原価分析（いくらで仕入れたか）
在庫データ × 商品マスタ → 在庫分析（どれだけ持っているか）
↓
粗利分析、ABC分析、需要予測、キャッシュフロー分析…If you set up the product master carelessly at the beginning, you will end up in a situation where you cannot perform analysis later because "the data is missing" or "the data is incorrect"...
This is actually a very common story.
That is why relying on an "implementation support company" is recommended
Problems that tend to occur when doing it in-house
If you proceed with ERP product master settings only in-house, these problems are likely to occur.
Not understanding the meaning of items: The question "What is this setting used for?" remains unresolved
Inconsistency with business workflows: Settings were made, but they do not match actual operations
Realizing later that "I should have done it this way": Discovering design flaws after operations have started
Accidents during data migration: Frequent errors when moving existing data to the ERP
The role of an implementation support company (ERP consultant)
A reliable implementation support company will provide support like this.
Reference: Money Forward "What is an ERP consultant? Roles and benefits of utilizing one"
Characteristics of companies that should request implementation support
There are no, or very few, IT staff in-house
There are 1,000 or more product items (SKUs)
Prices differ for each of multiple suppliers and customers
You want to migrate data from existing Excel files or old systems
You are in a situation where "this is your first ERP implementation"
Implementation support companies are "ERP implementation professionals".
Rather than going through trial and error on your own, it is often the case that requesting help from professionals from the start will save both time and costs in the end.
Summary: Product registration is the "foundation of ERP"
ERP product registration (product master settings) is the foundation for all business data.
Today's key points:
Manage by SKU: Register separately by color, size, and variation
There are multiple purchase prices: Anticipate that they will change based on supplier, quantity, and timing
There are also multiple sales prices: Design for different customers, quantities, and campaign prices
Initial settings become the source data for analysis: It is difficult to fix later
Utilize an implementation support company: Rely on professionals to ensure progress
Conclusion
For those of you who thought, "Product codes can just be anything, right?", what do you think now?
Actually, it is no exaggeration to say that whether or not an ERP implementation is effective is 80% determined by the initial product master settings.
Conversely, if you get this part right, an ERP can become a powerful management tool.
Next time, I plan to explain inventory management.
Stay tuned!
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📌 References and Sources
Logi Journal: "What is an SKU (stock keeping unit)? Explaining management and setup methods"
https://www.plc.co.jp/blog/sku/Nikken Lease: "What is an SKU? Units per item and the benefits of introducing them to inventory management systems"
https://www.nrg.co.jp/nikkenlease/n-column/skuSmartMat: "What is the meaning and importance of an SKU? Optimal management methods and points to note"
https://www.smartmat.io/column/streamlining/8078Aladdin Office: "What is an SKU? Meaning, how to count, and benefits for inventory management"
https://aladdin-office.com/zaiko/column57/Money Forward: "What is an ERP consultant? Roles and benefits of utilizing one"
https://biz.moneyforward.com/erp/basic/1063/