ABC XYZ Analysis
Classify your inventory items combining their value and variability of demand.
What it is
- Divide your inventory items into nine categories based on their value, as well as the variability of their demand.
- AX Category represents items with high volume and constant demand, while CZ represents items with low volume and sporadic demand.
What it delivers
- Combination of the two most used inventory optimization methods.
- Standard templates and visualizations.
- Detailed result tables for interpretation and future analysis.
What are the benefits
- Improved inventory policy choices.
- Better understanding of customer behavior.
- Focus on interpreting the results instead of spending time with standard analysis tasks.
The Process
Three simple steps to the right inventory policy.
1. Run the ABC/XYZ analysis
Understand the methods, and run the calculation in a few clicks.
2. Analyze the results
Analyze the current state of your inventory through amazing dashboards.
3. Optimize your inventory
Make future decisions with the help of our use case examples and stock implications.
The Methods
Learn the difference between ABC and XYZ methodology.
ABC Analysis
ABC analysis is an inventory categorization method that consists in dividing items into three categories, A, B, and C. Category A represents the most valuable items, while category C represents the least valuable ones.
XYZ Analysis
The XYZ Analysis is a way to classify inventory items according to the variability of their demand. X-items have little demand variation, while Z-items have high demand variation.
Result Analysis
Understand the results of ABC/XYZ Analysis.
- Articles are classified based on their volume (A, B, C categories), and based on the variability of their demand (X, Y, Z categories).
- With the combination of the two methods, the items are being grouped to 9 categories, from AX to CZ.
- You can visualize the classes and belonging articles.
- Analyze the most important KPIs for each class and each item, such as share and variation coefficient.
Inventory Management Case Study
Follow the inventory categorization journey of an e-commerce company.
Combine ABC XYZ Analysis with other tools
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Achieve better results with our recommendations.
ABC Analysis
Optimize inventory policies with regular or double ABC analysis.
Forecasting AI
Go beyond traditional forecasting and use machine learning technology.
Inventory Simulation
Determine the optimal inventory policy through multiple what-if scenarios.
