Did you know?

Just 20% of your items might be making 80% of your profits. Welcome to ABC Analysis โ€” the business tool that helps you focus on what matters most.

What is ABC Analysis?

ABC Analysis is a method to categorize inventory or customers based on their value: โ€“ A = High-value โ€“ B = Moderate-value โ€“ C = Low-value but high in quantity

Based on the Pareto Principle

ABC Analysis uses the 80/20 rule: โ€“ 20% of items = 80% of value โ€“ Helps in focusing on top-performing assets

Classification Breakdown

โœ… A Items โ€“ 10-20% of items โ†’ 70-80% value โš–๏ธ B Items โ€“ 20-30% of items โ†’ 15-25% value ๐Ÿ“ฆ C Items โ€“ 50-70% of items โ†’ 5-10% value

Example of ABC Analysis

In a store: โ€“ Laptops = A โ€“ Phone accessories = B โ€“ Charging cables = C Simple but effective!

Benefits of ABC Analysis

โœ” Better inventory control โœ” Smarter purchasing decisions โœ” Improved profitability

Common Uses of ABC Analysis

โ€“ Inventory Management โ€“ Customer Segmentation โ€“ Sales & Marketing Focus

ABC-Based Policies

โ€“ Invest more in A-items โ€“ Monitor B-items โ€“ Automate or minimize focus on C-items

Final Thought on ABC Analysis

ABC Analysis is simple, strategic, and powerful. Apply it and make your business more efficient!