Inventory Management
ABC classification.
Focus on what drives revenue.
Not all products deserve equal attention. Focus your time on the 20% of SKUs that drive 80% of your revenue.
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?
See how it works
with your inventory.
See how Fulfil handles ABC classification and inventory prioritization.