ABC Analysis Report

The ABC Analysis Report provides velocity analysis measured by the number of pick transactions per product or location. This report provides data that helps you determine where to slot products to facilitate the picking process. For example, a C product becomes an A product. If so, then the product should be moved to a primary pick area to ensure the product gets replenished.

Decide if it is worth the performance hit to continue picking from the C location, rather than moving the stock to an A location immediately. Through attrition, the C location is depleted fast because the product sells fast. You can then replenish the product in the new location. Stratifying inventory also helps you schedule other tasks and can be a guideline for a variety of other warehousing decisions.