ABC Classification
Spend your time on the SKUs
that drive revenue.
Fulfil ranks every SKU by revenue contribution, so you focus on the 20% that drive 80% of sales instead of treating every product the same.
The Pareto principle applied to inventory.
ABC analysis categorizes products based on their contribution to your business over the past 365 days.
Classification methods.
Sales revenue
Most common method. Classifies based on revenue contribution over 365 days. Best when revenue is the primary metric.
Net inventory value
Based on inventory movement value (quantity × product cost) over 365 days. Best when working capital is the focus.
Net inventory count
Based on quantity movement only, ignoring value. Best for high-volume operations with similar unit values.
How to use ABC classification.
Cycle count frequency
Count A items weekly, B monthly, C quarterly. Focus accuracy efforts where they matter.
Safety stock levels
Higher safety stock for A items to prevent stockouts. Lower for C items to reduce carrying costs.
Warehouse placement
A items in prime picking locations. C items in harder-to-reach areas.
Purchasing priority
Review A item replenishment daily. B weekly. C only when triggered by reorder points.
Setting up ABC classification.
Set default method
Settings → Products → Defaults. Choose Sales, Net Inventory Value, or Net Inventory Count.
Run classification
Fulfil calculates ABC class for each product based on 365-day data.
Use in operations
Filter cycle counts by ABC class. Set different reorder policies. Report on inventory value by class.
FAQ
Common questions.
How often is ABC classification recalculated?
Can I override the automatic classification?
What about new products with no sales history?
Related features.
Agentic ERP
Run it with your own AI agents.
Let AI do the busywork. Ask Claude over MCP which SKUs are drifting between your A, B, and C classes and get a straight answer without building a report first.
Related
Solutions & stories.
Multi-warehouse operations
Focus counts and replenishment on your highest-velocity SKUs across every location.
HexClad
How HexClad scaled past $500M with accurate control over a growing catalog.
The Ridge
Accurate stock across 9 global warehouses at 9-figure scale.
Run your business on
data you trust.
See how Fulfil handles ABC classification and inventory prioritization.