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What is ABC Analysis

ABC analysis is an inventory management technique that classifies items into three categories (A, B, and C) based on their value and importance, helping businesses prioritize inventory control efforts.

Real-World Example

An electronics distributor might use ABC analysis to identify that 10% of their high-end laptops (A items) account for 70% of revenue, 20% of mid-range accessories (B items) account for 20%, and 70% of low-cost cables and adapters (C items) account for only 10%.

Advantages and Challenges

Advantages

Challenges

What We Do

MET CO is a logistics provider built for speed, precision, and growth. We specialize in cross-docking, short-term warehousing, and wholesale distribution, with a strong track record in the grocery and automotive sectors.

As our clients scale, so do we—expanding into eCommerce fulfillment, value-added services, and just-in-time delivery. Our operations are designed to handle both bulk and high-frequency inventory with minimal friction and full visibility.

Whether you need rapid turnarounds, zone-based storage, or reliable outbound execution, MET CO acts as an extension of your supply chain—lean, fast, and aligned to your goals.

Frequently Asked Questions

What is the purpose of ABC analysis in inventory management?

ABC analysis helps businesses allocate resources more effectively by focusing on the inventory items that have the highest financial impact.

How often should a company update its ABC classifications?

ABC classifications should typically be reviewed quarterly or semi-annually, depending on how dynamic the business and inventory turnover are.

Can ABC analysis be used in industries outside of logistics?

Yes, ABC analysis is also applied in sales, customer segmentation, and production planning to prioritize high-impact areas.

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