Overview ABC analysis

What is ABC analysis, where is it used and what are its advantages and disadvantages?

ABC analysis is a very simple, accessible and effective way to evaluate and classify business objects (processes) depending on their priority, degree of their importance or value (significance). It allows you to increase the financial stability of the company.

Disadvantages of ABC analysis:

  • It is not possible to assess the stability of the process (seasonality, uneven consumption and demand);
  • Absence of unprofitable groups (goods).

The multiplicity of evaluation criteria implemented in report templates eliminates the critical drawback of the one-dimensionality of the classical approach to ABC analysis.

How to set up a template

Select the level or hierarchy of the cube as the object of analysis, define the indicators (measures) of the analysis and the parameters of the classification groups. To do this, refer to the Typical Template Settings section.

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