ABC Analysis

ABC Analysis

An ABC analysis is used to group products (or transactions) into three categories: A, B or C. The A-category consists of the most valuable products or transactions, the C-category of the least valuable products or transactions. You can use this to determine which part of the assortment yields the most for the organization, or requires further investigation. The results of this analysis provide an answer to questions such as:

  • Which items should we always have in stock?
  • What are the slow-moving products and should we continue to sell them?
  • Which items yield the most margin?

The ABC analysis below was made in PowerBi. You can group on the basis of turnover, on the basis of transactions and on the basis of a combination of the 2. Although the “80-20” rule is often correct (80% of the turnover is realized by 20% of the goods) it is also possible to define the limits yourself. The frame is interactive, give it a try. At the bottom right you can enlarge the image to the full screen.

The complete report consists of 4 tabs. Do you want to know more? Then contact us, we will be happy to give you a demonstration.

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