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ABC analysis

Classify your products by pick frequency and optimize your warehouse layout.

The ABC analysis classifies your products based on how often they are picked in your warehouse. This lets you see at a glance which products matter most to your day to day warehouse operation.

How does it work?

The analysis looks at the pick frequency over the past 90 days. Every time a product appears on a pick list counts as one pick, regardless of the quantity. If you do not use pick lists, it looks at how often a product appears in orders. What matters is how often a warehouse employee has to walk to that product, not how many units are picked.

Based on this, your products are divided into three categories following the Pareto principle (the 80/20 rule):

Category

Meaning

Typical share

A

Products that together account for 80% of all picks

~20% of your products

B

Products that represent the next 15% of all picks

~30% of your products

C

All remaining products with the lowest pick frequency

~50% of your products

The analysis is updated automatically every night.

What can you do with it?

Optimize your warehouse layout

  • A products: place these in the most accessible locations, close to your packing station. Your employees walk here most often.

  • B products: give these a mid range location in your warehouse.

  • C products: these can go in less accessible spots, such as higher shelves or further from the packing station.

Shifts

At the top of the report page you can see which products have recently changed category. For example, a product that moved from B to A because it was picked more often over the past period. This helps you keep your warehouse layout up to date.

Last updated on

Job Jenniskens

Written by

Job Jenniskens, Founder

Started ShopLinkr from his own webshop. Still builds on the platform every day and knows every corner of the code.

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Still have questions?

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