What is ABC Analysis in Fabrikatör?
ABC Analysis is an inventory categorization method that Fabrikatör uses to classify your products based on their sales performance. This helps you make more informed inventory decisions by identifying which products contribute most to your revenue.
How Fabrikatör classifies your products
Fabrikatör analyzes the last 30 days' performance of each variant. Based on their revenue contribution during this period, products are classified into these performance categories:
In the last 30 days:
✨ Fantastic (A-class): Products with this tag account for the top 80% of your store revenue
⚖️ Moderate (B-class): Products with this tag account for the following 15% of your store revenue
☹️ Poor (C-class): Products with this tag account for the last 5% of your store revenue
✋ Idle: Products that did not make any sales
Why does this classification matter?
ABC Analysis follows the Pareto Principle (80/20 rule), which suggests that a small percentage of your products likely generate most of your revenue. By identifying which products fall into which categories, you can make smarter inventory decisions and allocate your resources more efficiently.
How to use performance indicators effectively
Performance indicators are invaluable when restocking or reviewing your inventory. Here's how to leverage these indicators when setting up your Fabrikatör account:
✨ Fantastic products (A-class)
These are your bestsellers and most preferred by customers
Recommendation: Set "days of stock" 20% higher than your lead time
Example: If lead time is 100 days, days of stock should be 120 days
Why: These products drive most of your revenue, so stockouts would significantly impact your business
⚖️ Moderate products (B-class)
These products are in a transition stage - they could become fantastic or drop to poor
Recommendation: Set "days of stock" at least equal to lead time, but not exceeding fantastic products
Why: Your expertise about seasonality, trends, and customer preferences is crucial for these products
☹️ Poor products (C-class)
These are not very promising in terms of revenue contribution
Recommendation: Set "days of stock" equal to lead time or 10% less
Why: Focus on selling existing inventory and avoid restocking in large amounts
If these products run out of stock, they won't significantly impact your revenue
✋ Idle products
No sales in the last 30 days - a strong indicator of poor performance
Recommendation: Keep days of stock to absolute minimum
Why: Protects you from overstocking items that aren't selling
Filtering products by performance indicator
You can easily filter products by their performance indicators on the Replenish page:
Click the "Filter" button next to the search input
Select "Sales Performance" from the filter options
Choose the performance indicator(s) you want to view
Click "Add Filter"
This allows you to quickly focus on specific product categories when making inventory decisions.
Frequently Asked Questions
How can I change the ABC settings, such as the percentage and analysis period?
The ABC settings can be modified from the Settings page. For more details, please review this article: How to Configure ABC Analysis Settings in Fabrikatör.
Why do ABC analysis badges appear differently on Reports vs. Replenish screens?
On Reports
ABC analysis is based on product groups by default
A product group can be classified as Fantastic (A-class) even if it contains some idle variants
The classification considers the aggregate performance of all variants within the product group
On Replenish and PO Screens
ABC analysis is displayed at the variant level
Each individual variant has its own performance classification
You might see different badges for variants within the same product group
For more details, please review this article: Why do ABC Analysis Badges Appear Differently on Reports vs. Replenish Screens?