Where is ABC analysis used?

[sadiksojib35]

The use of research is appropriate at different stages. Usually, ABC analysis is used when something in business has not gone according to plan - turnover has increased, but profits have remained the same, or revenue has simply fallen. This method is also used when developing or revising a sales strategy, when planning a budget for purchases and optimizing a product range. In addition, experienced sellers conduct regular planned research to track sales dynamics. The time period taken for analysis may vary depending on the capabilities of the entrepreneur, external factors (for example, a crisis), or due to internal changes in the company.

Now let's figure out what ABC analysis of the assortment shows. The method allows you to identify products that sell poorly or bring in little profit. At the same time, the study identifies well-selling items that bring the greatest income to the business. This information helps the entrepreneur determine further steps in organizing sales.

A-products are the most valuable. They should always be bolivia whatsapp phone number in stock and actively advertised. This is the core of the assortment;
B-products are purchased in proportion to demand. Some items from this group may have the potential to move to group A;
C-products should be studied and the reasons for low demand determined - seasonality, poor marketing, overpriced, weak card design compared to competitors. If the problem cannot be clearly formulated or solved, the items are sold and the proceeds are invested in profitable assortment.


ABC analysis: types
The ABC method is used not only for product range analysis, but also for other categories: customer bases, retail stores, departments and individual employees, partnerships, suppliers, investments.

Let's consider the main types of ABC analysis:

ABC analysis of goods shows what brings in more revenue and what leads to costs - for example, a product sits in the marketplace warehouse and becomes an additional expense item;
ABC analysis of clients allows you to compare categories of clients and determine who uses the service more often and brings in the greatest profit;
ABC analysis of suppliers is carried out on the basis of data on the volume of purchases and shows with whom it is more profitable for a company or seller to cooperate;
ABC analysis of human resources makes it possible to evaluate the effectiveness of individual employees, as well as to identify departments with the highest efficiency;
ABC analysis of investments determines which investments generate the highest returns.
Additionally, using the ABC method, you can evaluate and classify services, retail outlets (shops, coffee shops, marketplaces), and specific business projects by profitability.