ABC/XYZ analysis: a steerable assortment in 4 steps.

The key points

  • The ABC/XYZ analysis divides your assortment by revenue share (ABC) and demand stability (XYZ) into nine classes.
  • AX articles can be planned almost fully automatically; CZ articles belong on the phase-out checklist.
  • You need 12 to 24 months of consumption history from the ERP for it, nothing else.
  • The classification goes stale: recompute at least quarterly.

What does the ABC/XYZ analysis do?

The ABC dimension sorts articles by value share: A articles typically make up 80% of revenue with 20% of the articles. The XYZ dimension measures how predictable demand is, from X (constant) to Z (sporadic). Together they form nine classes that should be planned completely differently.

Which strategy fits which class?

How do you run the analysis? The 4 steps.

The analysis is a snapshot. Assortments turn over: recompute the classification at least quarterly, otherwise you're steering with outdated maps.

How much liquidity is tied up in your warehouse?

30 minutes, your numbers, concrete answers. No pitch deck, no sales pressure.

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