Purpose

Prerequisites

  • Confirm the criteria and thresholds in ABC-XYZ classification. Use the criteria selected in your account, such as Revenue, Gross margin or No. of sell order lines; do not assume the XYZ label always means demand predictability.
  • Agree availability priorities and inventory-investment limits with the person responsible for purchasing.
  • Have the required Settings access and the service-level simulator enabled if you want to compare scenarios. View-only access does not permit changes.

Steps

  1. Review the Products in each class, AX through CZ, and what the configured criteria mean for your business. Check whether important Products are grouped as intended before changing targets.
  2. Record a proposed target for each class and the business reason for it. Prioritize deliberately rather than copying another webshop's percentages or automatically giving every class the same target.
  3. Where the ABC-XYZ service-level simulator is available, enter the proposed matrix within the bounds shown by each field and generate a simulation. Generating a result is not the same as applying it.
  4. Review the displayed investment, inventory recovery and margin estimates. Compare alternative matrices where the comparison controls are available. These are what-if estimates, not promised financial or stock results.
  5. Decide with the purchasing owner which targets, if any, to use. Choose an explicit Apply or save action only when you intend to change Settings; Skip and apply is also a change, not a preview. Verify the saved targets afterward.
  6. Review actual service levels separately over the period shown in your account. If results are unexpected, inspect the relevant Product and planning context before changing the matrix again.

Fields and columns

  • AX, AY, AZ, BX, BY, BZ, CX, CY, CZ: the nine class-specific target inputs. Use each field's visible validation, not a remembered universal range.
  • Current targets / proposed targets: the saved starting point and the values you are comparing.
  • Simulation metrics: estimates used to compare scenarios, including investment, inventory recovery and margin where shown.
  • Actual service level: an observed outcome, not the target or the simulation. See Service levels.

Expected result

A deliberate, reviewable target matrix with a reason for each class. Values change only through an explicit apply/save action; confirm the saved result before treating the new matrix as active.

Limitations

Classification is a way to group Products, not a universal target recommendation. A higher target is not a guaranteed stock level, order quantity or achieved service level. Account features, data and permissions determine available simulations and controls; an older simulation may be less representative as data changes.

Errors and recovery

Correct invalid or missing matrix values using the form's guidance. If a simulation is still processing, check its status before creating another. If saving fails or the result is unclear, reopen Settings and verify the saved matrix before retrying. If the simulator is unavailable, do not assume a preview ran or apply unreviewed targets; discuss the decision with your purchasing owner.