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ABC classification – improving inventory management

A free resource from EazyStock ‘Using inventory classification to reduce stock and improve service levels‘ will show you how to use ABC classification to stock the right products to achieve stock availability targets.

Your free ABC inventory classification eBook

In this eBook you’ll learn everything you need to know about ABC classification of inventory.

We’ll introduce ABC classification techniques and provide a simple framework for segmenting your stock items, based on their value and importance to your business.

Get our eBook now!



Download this eBook and discover:

  • How ABC classification models can improve the effectiveness of inventory policies
  • How to prioritise your time and focus on managing your most important products
  • The benefits of advanced inventory classification software

What is ABC classification?

A simple way to help with stock management is to use an ABC classification (or ABC analysis) model.

ABC classification lets you categorise stock into three groups, based on their value to your business:

A items: usually the smallest category but made up of the most important stock.
B items: generally a larger group of SKUs containing products of less value to the business.
C items: typically the largest category where items are the least important.

You can then set specific inventory rules for each group of products that will make the biggest difference to your business.

The benefits of ABC classification of inventory

ABC classification will help you improve stock management in a number of ways:

Focus your time and resources accordingly.

ABC analysis models highlight which items in your warehouse are the most important, so you can focus your resources on managing those that matter most.

Set targeted inventory policies.

Stock classification techniques help you work out appropriate inventory policies for each category. You can then set different fulfilment targets, safety stock levels and reordering parameters. For example, you could focus on improving the availability of your A items, over your Bs and Cs.

Stock the right products to meet demand.

Using ABC classification you can keep inventory levels under control, without negatively affecting stock availability.

Want to learn more? Get our free eBook on ABC classification now!

Take stock classification to the next level!

ABC classification is an easy way to help manage your inventory, but it also has a number of limitations. For starters it’s one-dimensional and only uses one factor to evaluate and categorise products. Secondly it’s a manual process that takes up value time and quickly becomes out-of-date.

The answer is to use EazyStock inventory optimisation software to automate the process.


EazyStock connects to your current stock system and takes ABC classification to the next level. It categorises inventory based on a range of variables, including demand, sales frequency, number of picks and annual consumption value.


Inventory policies are set and automatically updated based on service level targets and safety stock levels for each item.

With the analysis and hard work done for you, you’re then able to manage by exception, focusing on the items that EazyStock suggests need your attention.

Why EazyStock?

Ensure stock availability

Ensure stock availability

Make sure you always have the right products on the shelf to prevent stock outs and delight your customers.

Optimise demand forecasts

Optimise demand forecasts

Utilise advanced algorithms to track product demand, accounting for life cycle stages, trends and seasonality variances.

Lower inventory levels

Lower inventory levels

Get rid of excess and obsolete stock, freeing-up working capital for investment elsewhere in your business.

Automate re-ordering

Automate re-ordering

Produce automated order proposals to process in EazyStock or send back to your ERP.

Accurate replenishment

Accurate replenishment

Automatically calculate safety stock levels, re-ordering points and order quantities to ensure optimised inventory levels.

Be smarter with suppliers

Be smarter with suppliers

Place orders more cost-effectively by considering suppliers’ delivery schedules, lead times, discounts and costs.

Improve efficiency & save time

Improve efficiency & save time

Ditch the manual spreadsheets and save time that can be spent on strategy and innovation.

Get a fast ROI

Get a fast ROI

Benefit from rapid ERP integration and get up and running fast with a system that’s easy to deploy.

Trusted by growth-driven companies

Get your free ABC classification eBook

Do you often question whether you’re stocking the right products in your warehouse? Do you wonder how to prioritise your time to focus on the most important SKUs? Are you constantly trying to reduce inventory levels without affecting stock availability?

In this eBook we’ll introduce ABC and XYZ classification and provide a simple framework for segmenting your stock items, based on their value and importance to your business.

 

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