🔠 The ABC Classification Settings
Your inventory is not created equal. Some products drive the majority of your sales, while others sit quietly in the back of the warehouse. The ABC Classification page allows you to categorise your products so Optiply knows exactly where to prioritise your capital and buffer stock.
These settings form the core foundation of your entire purchasing strategy. To access them, navigate to Settings in the main top menu, then select ABC classification from the left-hand sidebar.
📊 1. ABC Settings (Category Distribution)
At the top of the page, the ABC settings section determines exactly how your products are divided into their respective A, B, and C categories.
The Distribution Metric (Dropdown): Use the dropdown menu to select the specific data point you want Optiply to use to rank your products. (For example, in the screenshot, "No. of sell order lines" is selected, meaning products are ranked by how often they appear in customer orders, but you might also choose to rank by gross margin or revenue).
The Percentage Split: Once you choose your metric, you must allocate the percentage distribution for each category. A standard starting split is:
A: 70% (Your top performers)
B: 25% (Your consistent, mid-tier performers)
C: 5% (Your slow movers or long-tail items)
🎯 2. Desired Service Level Per Category
Once Optiply knows which products belong in which category, you need to tell the system how aggressively to keep them in stock. You do this by setting the desired service level per category.
The service level represents your target delivery reliability (e.g., if a customer wants to buy this item, what is the percentage chance you have it in stock ready to ship?).
A (e.g., 98%): Because these are your most important products, you want a very high service level. Optiply will suggest ordering more buffer stock to ensure you rarely run out.
B (e.g., 95%): A balanced approach for mid-tier items.
C (e.g., 90%): A lower service level for slow movers to prevent you from tying up too much capital in deadstock.
Note: Choosing the proper delivery reliability is a major strategic choice! If you need help finding the sweet spot between high availability and low investment, please contact your Customer Success Manager or email support@optiply.nl.
⚙️ 3. Advanced Settings
Click the Advanced Settings dropdown to reveal two critical parameters that fine-tune how Optiply manages edge cases and historical data.
Sell Order Threshold
This is the minimal number of sell orders needed for a product to "exit" the C category.
Why use this? This is mainly used in combination with setting your C category service level to 0%. This strategy ensures you do not keep a proactive buffer stock for products that rarely sell. However, if a slow C-product suddenly gets a spike in sales and crosses your designated threshold (e.g., "2" orders), the system will automatically upgrade its category so Optiply starts ordering stock for it!
History Length
This defines the number of days in the past that the algorithm will look back to determine your product categories.
Why it matters: This value heavily influences your forecasting. By setting it to 365 days, you ensure Optiply is looking at a full year of seasonal data to calculate both category placement and future needs.
❓ 4. Frequently Asked Questions (FAQs)
What happens if I change my ABC percentages?
Changing your ABC percentages or the metric in the dropdown will cause Optiply to recalculate and redistribute your entire catalogue overnight. You will likely see significant shifts in your proposed purchase orders the next day as the algorithm adjusts your buffer stock to match the new strategy.
Can I set my A Category Service Level to 100%?
Technically yes, but it is highly discouraged. To mathematically guarantee a 100% service level, the algorithm would need to order an infinite amount of buffer stock to cover every possible unforeseen extreme sales spike. Setting it to 98% or 99% is vastly more capital-efficient while still providing incredible reliability.