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-valueโ B = Moderate-valueโ 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 valueโ Helps in focusing on top-performing assets
Classification Breakdown
โ A Items โ 10-20% of items โ 70-80% valueโ๏ธ B Items โ 20-30% of items โ 15-25% value๐ฆ C Items โ 50-70% of items โ 5-10% value
Example of ABC Analysis
In a store:โ Laptops = Aโ Phone accessories = Bโ Charging cables = CSimple but effective!