Study of product range using ABC analysis

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Let's look at the analysis results

In order to determine the most profitable clients for the company, you need to look at the intersection of the ABC axis with the XYZ axis. The most interesting customers are in groups A and B, namely:
- AX and BX buy most often and provide the largest amount of revenue;
- AY and BY do not come often, although they provide significant revenue;
- AZ and BZ make purchases irregularly, despite good revenue.

The most unprofitable customers are in group C: those who make single purchases and practically do not make revenue.


Using analysis, you can determine the part of the range that brings the maximum profit. As a rule, the most significant goods, in demand and valuable, fall into group A, those with average significance fall into B, and those with the least significance fall into C (new products do not count).
abc analysis results
We supplement ABC analysis with XYZ analysis.

XYZ analysis shows the level of fluctuations in product advertising phone number data and the regularity of its purchase. As a result of the analysis, we obtain the variation coefficient, or fluctuations in consumption. We see the amount of deviation of consumption from the average as a percentage.

Along the XYZ axis, we distribute the product range into the following categories: by volume or quantity, amount, and amount with markup.

Group X (5%-15%) includes products with a stable consumption value.

Group Y (15%-50%) includes products whose sales are the most difficult to control.

Group Z (50% and more) includes products that are purchased irregularly and demand for them is almost impossible to control.