← Back to Glossary
Inventory

ABC Analysis

What is ABC analysis in inventory management?

ABC analysis classifies inventory into three categories based on value and volume: A items (high value, ~20% of SKUs, ~80% of revenue), B items (moderate), and C items (low value, high volume). Each category gets different planning treatment — A items warrant tight forecasting and frequent review, while C items can use simpler replenishment rules. In African FMCG, ABC segmentation must also consider informal channel importance.

How iQStep handles this

Product Management with category-based planning

See iQStep in action →

Ready to optimize your supply chain?

iQStep is the AI-native supply chain platform built for African FMCG and retail companies. Start your free trial today.

Start Free Trial