What Is ABC Inventory Management?
Understand how ABC Inventory Management fits into the supply chain
ABC inventory management is a method for determining placement of products within a warehouse or distribution center based on volume and usage. Products, or SKUs, are categorized based on how fast they move or turn. Fast moving products are categorized as A, B products move slower and C products move the slowest. Sometimes products are categorized as D and considered deadstock. Fast moving products are placed so they can be picked or moved more easily, often closer to the dock. The goal is to make it as easy and efficient as possible to put away and pick the product.