Did you know?

Just 20% of your items might be making 80% of your profits. Welcome to ABC Analysis — 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: – A = High-value – B = Moderate-value – C = Low-value but high in quantity

Based on the Pareto Principle

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

Classification Breakdown

✅ A Items – 10-20% of items → 70-80% value ⚖️ B Items – 20-30% of items → 15-25% value 📦 C Items – 50-70% of items → 5-10% value

Example of ABC Analysis

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

Benefits of ABC Analysis

✔ Better inventory control ✔ Smarter purchasing decisions ✔ Improved profitability

Common Uses of ABC Analysis

– Inventory Management – Customer Segmentation – Sales & Marketing Focus

ABC-Based Policies

Invest more in A-items Monitor B-items 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!