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CLASSIFICATION OF GOODS
What is ABC analysis?
What does this contribute to the supply chain?
Process of classifying actions by priority.
Categories
Helps reduce inventory holding cost and release
working capital.
It is divided into 3:
Category A
Category B
Category C
Importance of a good ABC method
Increases sales volume achieving better
availability of the most appreciated products
by clients.
Why is it important to classify your products?
A large demand is difficult to manage so it is important to structure your assortment logically.
Why perform an ABC analysis?
It will provide you with valuable insights into your assortment to drive optimization initiatives designed to save you money.