🎥 Webinar #7 - Master Your Inventory Management with ABC-XYZ
Are you treating all your products equally? If so, you might be tying up vital capital in the wrong places!
Dive into the powerful feature of ABC-XYZ classification and learn how you can use this tool to fundamentally enhance your inventory management. Hosted by our Customer Success Manager, Albertine, this session will teach you how to properly segment your assortment so you can invest heavily in what sells, and reduce financial risk on what doesn't.
👉 [Click here to access the webinar]
🌍 1. How to Add Translated Subtitles
Because this webinar was originally recorded in Dutch, you can easily use YouTube's auto-translate feature to watch the session with English subtitles (or any other language you prefer!).
To turn on translations:
Open the video and click the CC (Closed Captions) icon on the bottom right of the video player to turn on subtitles.
Click the Settings (Gear) icon right next to it.
Select Subtitles/CC, and then click Auto-translate.
Choose your preferred language from the dropdown list.
That's it! You can now watch the session comfortably in your desired language.
🛑 2. Key Takeaways: Mastering ABC-XYZ
If you are short on time, here is a quick recap of the core strategies Albertine discusses to help you segment your catalogue and protect your cash flow:
Takeaway 1: The ABCs of Volume and Value
Not all products deserve the same amount of budget. The traditional ABC classification segments your items based on sales volume or profit margin. 'A' items are your crucial top performers, 'B' items are your mid-tier consistent sellers, and 'C' items make up your slow-moving "longtail" assortment.
Takeaway 2: The XYZs of Predictability
While ABC measures how much a product sells, XYZ measures how predictably it sells. 'X' items have very steady, stable demand. 'Y' items fluctuate a bit more, and 'Z' items have highly erratic, unpredictable sales spikes.
Takeaway 3: The 9-Box Grid Strategy
By combining these two metrics, you unlock a powerful 9-box grid (e.g., AX, BY, CZ). We explain how to assign different Desired Service Levels to each box. For example, you want a 99% service level for your "AX" products (high volume, highly predictable), but a much lower service level for "CZ" products (low volume, highly erratic) to avoid piling up deadstock.
Takeaway 4: Automated Reclassification
You don't need to shuffle products around manually! Learn how Optiply continuously analyses your sales data and automatically moves products between these classifications as their life cycles change, adjusting your purchasing advice in real-time.
❓ 3. Frequently Asked Questions (FAQs)
Is the XYZ classification necessary, or is ABC enough?
While a simple ABC setup is a great starting point, turning on the XYZ dimension gives you significantly more control. It prevents the system from over-ordering a top-selling product just because it had one random, unrepeatable spike in sales. If your catalogue is growing, XYZ is highly recommended!
How often do products change categories?
Optiply calculates this dynamically. If a previously stagnant 'C' product suddenly goes viral and starts selling consistently, the algorithm will automatically promote it to an 'A' or 'B' category and begin ordering more buffer stock to support the new demand.
Where do I configure my ABC-XYZ settings?
You can view your grid, adjust the category size percentages, and set your Desired Service Levels by navigating to Settings > ABC - XYZ classification in your Optiply dashboard.