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XYZ Analysis – 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 XYZ analysis (or XYZ analysis for short) to stock the right products to achieve stock availability targets.

Your free ABC XYZ analysis eBook

In this eBook you’ll learn everything you need to know about classifying inventory.

We’ll show you how XYZ analysis models can help you prioritise your time and set more effective inventory policies that focus on the availability of your most important products.

Get our eBook now!



Download this eBook and discover:

  • How XYZ analysis models can improve the effectiveness of inventory policies
  • How to ensure you’re stocking the right products to meet demand
  • XYZ analysis examples
  • The benefits of advanced inventory analysis software

What is XYZ analysis?

Simple ABC analysis models have their limitations. A more advanced option is to use ABC XYZ analysis (often shortened to XYZ analysis).

XYZ analysis is a framework used to categorise products based on their variability of demand. This means you can segment items based on their forecastability e.g the likelihood that their demand will vary from their forecast.

X items = regular demand
Y items = strong variability in demand
Z items = very irregular and difficult to predict demand

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

The benefits of XYZ analysis

XYZ analysis will help you improve stock management in a number of ways:

Focus your time and resources accordingly.

XYZ 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.

XYZ analysis 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 XYZ analysis you can keep inventory levels under control, without negatively affecting stock availability.

Want to learn more? Get our free eBook on XYZ analysis now!

Take stock classification to the next level!

XYZ inventory analysis is an easy way to help manage your inventory, but it also has a number of limitations. For starters it only uses two factors 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 XYZ analysis 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 our free eBook on XYZ analysis

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 analysis and provide a simple framework for segmenting your stock items, based on their value and importance to your business.

 

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