The ABC Sales Analysis Excel template categorizes sales according to 3 categories: A, B and C.
You enter the product, price and units sold at a certain point in time
It ranks each product according to the category, with the A category being the most valuable and the one that needs to be paid attention strategically.
You get a table with an analysis of the products as well as a graph that helps to understand the proportions that are hosted in each category.
ABC Sales Analysis
The Pareto principle establishes that 80% of the total consumption is concentrated in 20% of the articles that one handles, this means that the demand is not distributed in a uniform way among the different articles but is concentrated.
With the ABC analysis it is assumed that the company must classify its articles into 3 different categories:
Category A: products whose consumption value is the highest, represent between 70% and 80% of sales but are no more than 20% of products.
Category B: products that represent between 15% and 25% of sales but concentrate 30% of the products handled by the company.
Category C: Represents the largest amount of products sold by the company, generally 50% but in terms of value, is the lowest, reaching up to 5%.
The important thing about this analysis is that strategic decisions can be made regarding inventory on those products that are crucial in sales.