A complete guide for ABC Analysis . What does it mean in inventory management? How to implement? Challenges vs benefits? All in this article. Step-by-Step Guide to Performing ABC Analysis Real-Life Examples of ABC Analysis Common Challenges in ABC Analysis Integrating ABC Analysis with Inventory Management Software Conclusion FAQs What Is ABC Analysis in Inventory Management? ABC analysis is a method of categorizing inventory into three groups—A, B, and C—based on their importance. By mastering ABC analysis , you can enhance your inventory management practices, reduce holding costs, and boost overall profitability. In this comprehensive guide, I will provide you with a step-by-step tutorial on implementing ABC analysis , using Excel. I used this Excel Template to perform the analysis . Getting Started With ABC Analysis in Inventory Management ABC analysis , also known as ABC classification, is an inventory categorization technique that classifies inventory products based on their relative importance in the portfolio. It classifies the inventory into three distinct categories: A, B, and C.
