ABC Analysis Excel Template

Inventory management is one the most important areas to get efficiency and productivity in the business. Our ABC Analysis Template is designed for you to understand the real structure of your stocks. This Excel template will let you make ABC classification for your portfolio.

For companies of all sizes, this template is an invaluable resource as it offers a perceptive method for organizing inventory, maximizing stock levels, and improving overall operational effectiveness.

What’s ABC Analysis?

The ABC Analysis technique is based on the Pareto principle, also known as the 80/20 rule. It divides inventory into three classes (A, B, and C) according to how valuable and important they are to the company.

• Class A: Most valuable items
• Class B: Moderately important items
• Class C: Least financial impact items

By concentrating on essential products that have a major effect on a company’s bottom line, this ABC inventory classification aids in making sure that vital resources are distributed efficiently.

How to use ABC Analysis Template?

Firstly, this Excel template consists of three main sections:

• Data Input
• Results Table
• Dashboard

Basically, this ABC Excel Template will let you make inventory classification to define the most valuable items in your portfolio.

Let’s see the sections one-by-one.

Data Input

Firstly, you should start with listing your items in the data input section.

Essentially, this is a simple table to list your items with SKU Code, Description, Unit Price and Annual Demand.

Also, this list will let you input up to 1,000 different SKU items.

Additionally, you’ll find a small settings table in this section. And, you’ll be able to configure your own ABC Classification limits.

You can change the percentages of A, B, and C groups. But please remember that your total percentage should equal to 100%. Otherwise, the template will give you a warning.

Results Table

Secondly, you’ll find a results table on your ABC Analysis Template. So this section is basically an analysis table with all calculations for your inventory categorization.

According to your input table, this template calculates:

1. Annual $ Value
2. Annual Value %
3. Cumulative Value
4. Cumulative %

Finally, according to your results the template defines the class of each item.

You can easily track or filter the ABC class items in this section.

ABC Analysis Template Dashboard

This is the final section of our tool. So, you’ll be able to visually analyze your inventory portfolio here.

Firstly, on the top-left section you’ll find a pareto-style ABC chart on the dashboard.

Besides, there’s annual value bar graph for your inventory portfolio. This chart is designed dynamically so that you can see Top 2, Top 3, Top 5 or Top 10 SKU’s according to their annual values:

Lastly, you can see the number of items in each class with a doughnut chart on the right side of your dashboard.

So, that’s all for the ABC Analysis Template in Excel.

Where to use ABC Analysis?

This very common inventory management technique has a very wide range of application sectors:

• Retail Businesses: This template is perfect for retail operations as it helps manage a variety of inventory types, from everyday consumer goods to high-end electronics.
• Manufacturing Sector: Using the template, manufacturers can arrange components and raw materials in order of importance, guaranteeing the availability of essential items for production processes.
• Warehouses: This is also very useful tool for efficiency in warehouse management.
• Healthcare Sector: The template helps healthcare facilities prioritize critical medications and equipment and manage medical supplies.
• Startups and Small Enterprises: The template is a very useful tool for smaller businesses because it helps manage inventory effectively without requiring complicated software.

ABC Analysis Excel Template Features Summary:

• ABC Chart Generator
• Ready-to-use inventory management tool
• Editable settings for ABC classification
• Easy to get pdf export
• Instant Download
• No VBA or Macro codes
• Compatible with Excel 2007 and later versions
• Works both on Mac and Windows