SAP Inventory Strategies – ABC/XYZ Analysis

Are you looking to leverage SAP data and turn it into data insights. Do you need help with a strategy for inventory levels.  Let me teach you about the ABC/XYZ matrix and how to integrate it with SAP data.  Inventory usage can vary and demands can fluctuate.   This is where the ABC/XYZ analysis comes in.  It provides insight to which segment your inventory should belong and allow you to decide on an inventory strategy utilizing SAP control knobs.

In this course, you will learn the following:

• Providing an overview of the inventory analysis in SAP

• Provide an overview of ABC classification

• Provide an overview of XYZ classification

• Provide an overview of the ABC-XYZ matrix.

• We will then wrap up with an SAP Demo

There are 3 pieces to the inventory analysis toolset.

First we have the ABC Analysis which can be used as a valuable inventory analysis instrument, in essence it is a data classification tool. The classifications for inventory purposes can range from material consumption, goods movements, or material stocks. The materials are then divided into 3 segments (A, B, or C).

Next we have the XYZ Analysis is a classic secondary analysis that is based on the ABC analysis. However, it used to weight the individual units according to their consumption pattern. Depending on how regularly a unit is consumed, it is assigned to one of three segments (X, Y, or Z)

The ABC-XYZ Matrix Analysis represents the combination of the above 2 analysis and provides you with some import information that will be valuable when choosing the right optimization tools for each material.