ABC Analysis: Prioritize What Matters Most

ABC analysis divides inventory into three categories: A (high-value, low-quantity), B (moderate-value), and C (low-value, high-quantity). This strategy helps businesses allocate attention and resources wisely. 'A' items require strict control, while 'C' items can be managed with simpler techniques. By focusing on high-impact items, companies reduce waste, improve forecasting, and maintain better stock balance. ABC analysis is particularly effective in large warehouses or retail chains where inventory complexity is high. When integrated with automation tools, this approach can drastically improve decision-making, reduce carrying costs, and enhance customer satisfaction. It’s one of the foundational techniques for businesses seeking to refine their stock strategy without overcomplicating operations.