Which productscontribute the mostto your business?
Ensure your essential products are always in stock and prevent your funds from being tied up in excess inventory. If you can’t distinguish the value of your products you may overstock on slow-moving items and understock on popular products. When demand exceeds the supply this approach can quickly lead to expensive stockouts.
Optiply uses product categorisation to balance your inventory and show how products impact your revenue and margins.
Balance your inventory based on the impact products have on
your revenue and margin.
The ABC categorisation provides valuable insights into the contribution of products to your webshop’s gross margin. You can determine the desired product availability per category by considering the number of products sold, revenue or gross margin.
The ABC analysis helps you to balance your inventory, leading to optimised inventory and profitability.
Desired Product Availability
For high-priority A products, you want to set a high service level to ensure product availability and maximise revenue. Meanwhile, for lower-value C products, setting a lower service level is acceptable as you lose very little revenue while minimising the risk of cash getting tied up in stock. Or worse, it becomes dead stock.