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Use Operations > Inventory > ABC Analysis to rank products by consumption value, the cost of stock that left inventory through shipments and other stock reductions. The few products that make up most of that value are tier A; the long tail is tier C. Use the tiers to decide how often to cycle count and which products deserve the closest purchasing attention. The report is read-only.

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Before You Start

  • Permission: you need the reports view permission to open the screen and run the report.
  • Location filter: the Location list appears only when your company has more than one location, and it needs settings view access to load. Without that access the report still runs for all locations.
  • History: the report needs stock that has left inventory at cost. A new company with no shipments yet shows no tiers.
Other ways in: search for ABC Analysis in the command palette.

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Run the Report

  1. Open Operations > Inventory > ABC Analysis. The report runs with the default thresholds as soon as the page opens.
  2. Set Threshold A (% cumulative value), from 10 to 90. The default is 80.
  3. Set Threshold B (% cumulative value), from 11 to 99. The default is 95. It must be higher than threshold A.
  4. Optionally enter Lookback (days, blank = all time), up to 1,095 days. Leave it blank to use all history.
  5. If you have more than one location, choose one in Location, or leave All locations.
  6. Select Run Report. The button reads Running… while the report loads.
  7. Select Reset Defaults to go back to 80 and 95, all time, and all locations, and run again.

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How the Tiers Are Set

Arcus sorts products by consumption value, highest first, and adds up their share of the total as it goes down the list:
  • Tier A: products up to threshold A of cumulative value. With the default, the products behind the top 80 percent.
  • Tier B: products between threshold A and threshold B. With the defaults, the next 15 percent.
  • Tier C: the rest of the value.

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Read the Results

Tier cards: one card each for Tier A, Tier B and Tier C, with the tier’s consumption value, SKU count, share of consumption, and a suggested counting cadence (Monthly cycle count, Quarterly cycle count, Annual cycle count). Summary cards:
  • Total consumption value: the value consumed in the window, labelled Last (days) days or All time.
  • Products classified: how many products received a tier, with the thresholds used.
  • Products with no movement: products you hold that never had stock leave inventory. They are candidates for tier C and for the Dead Stock review.
Table columns: Tier, Product / SKU, Consumed qty, Consumed value, Cumulative %, On hand qty, On hand value, and Last movement.

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Messages You May See

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Use the Tiers

  • Cycle counting: count tier A most often. To have Arcus create counts on a schedule by class, turn on Auto-schedule cycle counts by ABC class at Settings > Shipping & Fulfillment > Warehouse.
  • Purchasing: review reorder settings for tier A products first; a stockout there costs the most.
  • Slow movers: compare tier C and Products with no movement with the Dead Stock report.

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What This Report Does Not Change

Running the report is read-only. It posts nothing to the ledger, moves no stock, and does not change any product’s settings or schedule counts by itself.

Cycle Counts

Operations > Warehouse > Cycle Counts: count tier A products more often.

Dead Stock

Operations > Inventory > Dead Stock: on-hand products with no recent movement.

Inventory Valuation

Operations > Inventory > Valuation: the value of all stock you hold.

Supply & Demand

Operations > Inventory > Supply & Demand: replenishment pressure for stocked products.