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What is an ABC product analysis? Know its advantages

Ordering a warehouse effectively so that you can then pick up and drop off items without getting in the way of any other product is tricky. Doing an ABC product analysis can help you. But do you know what an ABC product analysis is ? Then I’ll explain it to you. Are you going to miss it? 

You may also be interested in: The 2019 Logistics Trends that will take you further

Index of contents

  • What is an ABC product analysis?
  • Classification
      • Category A
      • Category B
      • Category C
  • Treatments
  • How is it done?
  • Advantages of an ABC analysis

What is an ABC product analysis?

An ABC product analysis is an analysis method that divides a topic into three categories: A, B, and C. It is a useful method that streamlines merchandise storage processes in both small and large companies. The ABC product analysis is a very useful tool for workers in the logistics and transport sector, as they are in charge of the organization and management of the warehouse. It helps to design the distribution of inventories in warehouses. 

This method allows identifying the items that have a significant impact on the overall sales value, costs, among others. It allows to create product categories based on levels and with different control modes. In addition, the ABC product analysis allows statistics on the success of product sales to be made and is a tool that helps us to diagnose possible unnecessary stocks in the warehouse .


The purpose of this analysis is to achieve greater control over the inventory . It seeks to optimize the organization of products in such a way that those that are most attractive to the public and also most in demand, are at a much faster reach. 


It is necessary to classify the different products into 3 types, taking into account the importance of each of the items in the warehouse:

Category A

Category A represents the most valuable products or customers. They are the most important products and those that contribute to the overall profit without consuming too many resources. It represents approximately 60% of the total income.  

Category B

Category B has to do with potential and are those products or customers that are halfway there. They are not important enough to receive much attention. These customers could become Category A items. 

Category C

It’s the small transactions that are essential to making a profit, but they don’t bring much individual value to the business. This is where the majority of customers and products are located. Their importance is minimal and they report little benefit.



Each item receives a different treatment according to its importance. 

  • Type A items must undergo strict inventory control. Given the importance of these, they must have better secured storage areas for maintenance and accessibility. In these articles they must try to avoid situations of out of stock since they are a priority in sales.  
  • Type B articles are intermediate between those of type A and B. Monitoring must be done to observe the viability of whether they can become type A articles or will become type C.
  • Type C articles usually only have one unit available in the inventories of type C products. Sometimes there may be a lack of stock but it is a situation that is taken normally since they are articles that present a low demand. 

How is it done?

In order to carry out an ABC product analysis, it will first be necessary to define which are the most important articles, as we have already commented before. 

Once the assignment of each product has been done, Type A items will begin to be placed in the most accessible areas, such as at the entrance or at the front of the shelves. Subsequently, type B would be placed and then type C since they are the least requested, they will not need to be placed in areas with greater accessibility. 

It may interest you: What are mass consumer products and their best practices

To correctly perform an ABC product analysis, a series of steps must be followed: 

  1. Obtain data: In order to correctly classify a product we need to have data. 
  2. Sort data. You have to average the values ​​of each item and order them from highest to lowest. 
  3. Multiply percentages by the number of articles: To know how many articles to take in each area, you have to multiply the percentages by the number of articles. 
  4. Categorize the articles: Once we know how many articles we are going to classify by area, we have to sort them from highest to lowest. The first ones will belong to zone A, then to B and later to C.

Advantages of an ABC analysis

The main advantages of using an ABC analysis are: 

  • Segment customers and break down specific data
  • Identify most valuable customers
  • Facilitates strategic analysis of data 
  • Maximize profits
  • Increases the utility and credibility of cost information. 
  • Eliminate activities that have no product value

Now that you know what an ABC analysis is, its operation and advantages, I encourage you to sign up for a Master in Supply Chain & Technology Operations Management, you will be trained by the best professionals. 

If you liked this article, I encourage you to comment and share it on the networks.


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How to Create Account in EXMO step by step

In this article you will learn how to register in EXMO in 2022, as you well know it is a cryptocurrency platform to trade, as well as buy and sell digital currencies. Next, we are going to make you a quick and easy guide to create your account.

How to open an account in step by step

Access the official website of EXMO to be able to register for free.

Select “Registration”

At the top right you will have a Registration button, click on it and there you will open a form to place basic data such as username, email, telephone, password and its confirmation, as well as the acceptance of terms and conditions of the platform.

Likewise, if you want you can subscribe to receive news you just have to activate the option. then activate the captcha and click on “Registration”

Phone and email verification

They will send you an SMS to the registered phone to place the verification code and give it confirmation. The same will happen with the email, in which they will send you an email with a link to confirm the account and activate it.


Account Verification

Once you have completed all the registration, you must verify your account, this is quite important that you do it so that you do not have limitations, it is a financial platform and as such, by regulation you must verify your identity and address.

  • For identity, you can do it through your ID, passport or other identity document, also a selfie with the document, you can support yourself by linking the mobile if you do not have a webcam.
  • In the case of the address, it would be verified with a bill for services such as electricity, water or other document where they can verify your location or residence, this is to raise the limits further.
  • For the card, you need to enter your card details and even take a photo and attach it.

Ideally, you should verify everything, but the first thing is the identity, in which you will be required name, surname, middle name in the case you have. Secondly, you will be asked to identify what type of document you are going to use to identify yourself, for example, the DNI.

After that, you must upload a photo of the front and back of the identity document, if you do not have them at hand, you can do it with your mobile and send it to you by mail or web whapsapp or another application, and then upload it from the computer.

Once this is done, it will request a selfie with specific details, where you must write down on a paper the word EXMO, followed by the date of the day of the photo and hold the DNI without covering anything, there you capture the photo and attach it, with these steps you will already be in the process of verifying the identity.

Likewise, you can do it to verify the address with a receipt and in the case of the card you must do the same, they are similar processes quite simple, the idea is that you complete the entire registration process.


Another important point regarding registration is the security configuration in which you can add extra protection and have two-step authentication. Likewise, you can observe other options such as personal information, which you can review carefully.


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How to create an account on Poloniex step by step

In this article you will learn how to register with Poloniex in 2022, it is a cryptocurrency trading platform, where you can trade with margin or leverage and you can also do hodl. Here’s a step-by-step way to create an account on Poloniex.

Go to the official website of Poloniex

Access the Poloniex registration page to later follow the step by step that we will give you to register for free.

Select “Sing Up”

Once you are on the platform you must select in the left menu “Sing Up”, where you must enter the email and password, the latter you must confirm it. Additionally, you must place the referral code (optional), as well as accept the terms and policies that govern this page.

Verify your email

Once the previous form has been completed, you must check the email where a link will be sent for the purposes of verifying the email, in order to continue with the account registration process.

Account access

With the email and password data entered, we select “Log In” and access. Among the important things that there are is the “profile”, where you will have to verify your account.


If you want to apply margin for trading or leverage you must verify your profile in “Upgrade” you will be able to select other aspects that will help you verify your identity, you will probably be asked to upload a file, such as a photo of the DNI or an invoice to verify the address.

Then, in the event that you want to use the future option that allows margin up to one hundred leverage, you have to have verified these things.

This request is totally normal, since it is required by all financial platforms by legal issue, with this you would already have verified level 2 and with it you would not have any type of limit.

Right now, you could make all kinds of deposits, normal purchases with certain fairly high limits.

Two-factor authentication verification

To protect your account you can activate 2FA this is double authentication code, so you must enter a code apart from the password to be able to log in.


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How to Invest in Cryptocurrencies on Skrill

If you are one of those investors who do not like to deal with many complicated orders, but prefer to hold long-term, then Skrill is an excellent alternative for you. With the simplicity that characterizes it.

But the question is, how to invest in cryptocurrencies within Skrill? The answer will be shown in this article.

But first log in to your Skrill account, then you could already start the step by step that will be shown below.

Access Skrill’s Cryptocurrency Investment Options

Like any financial platform, Skrill puts at your disposal tools so that you can invest in cryptocurrencies within yourself, doing so in a simple and comfortable way. To access these tools, below, we will describe the following procedure:

  1. Within the home screen of your account, in the left sidebar, find and tap on Cryptocurrencies.

Important: It is likely that when you enter this section, you will be asked to accept some terms or similar.

  1. Once there, you are presented with different options in terms of cryptocurrencies. From among these, you will select Invest now, clicking on this option.

  1. Once you access that section, you will be shown an extensive list of existing cryptos in Skrill. In each of which, you are given a Trade option. If you click on any of these, you would enter their trading options.

  1. When you have entered the crypto you chose, you will see a Buy – Sell panel.

Ways to trade cryptocurrencies in

In this buy-sell panel or trading box, you will have some options that will allow you to perform these operations:

Steps to buy cryptocurrencies within Skrill

First of all, talking about the purchase of cryptocurrencies in the Instant mode (which is the usual one), you will be able to do the following:

  • Select the currency in which you want to buy cryptos.

  • Set the amount to spend that, for its purposes, must be a minimum of 10 EUR (You are also shown the balance you have available).

  • Select the cryptocurrency in which you are going to invest.

  • See what you are going to receive in cryptos in equivalence for what you have invested.

  • See the commission you will be charged for that transaction.

When you have everything ready, then you can click Next.

After this, you will be able to see the summary of the entire operation; you will be told everything you have added, such as the amount and what you would receive, and also the commission charge, which will be added to the total amount to be spent. If you agree with everything, you can click on Confirm.

Steps to Sell Cryptocurrencies within Skrill

There is not much to comment on in the case of selling your cryptos within Skrill, as they are basically the same steps as in the case of the purchase:

  • You establish the type of crypto that you are going to sell (and that logically, you should own).

  • You indicate the amount of cryptocurrencies to sell directly or, if you prefer, using the percentage indicators.

  • Select the currency in which you want to receive the funds in equivalence.

  • See how much you will receive, in the same way as the previous case.

Having this ready too, you would click Next.

Following this, you must also click on Confirm in a summary similar to that of the case of the purchase, where you will see important data with which, if you agree, you can proceed to the respective confirmation.

Some other options that Skrill gives you to trade

The options you have in Skrill to trade are very practical and easy to use. And for your convenience, they are not numerous. Here’s what you can find on Skrill for when you want to trade on it:

The Portfolio section

In this section you have at hand some useful things for your negotiations, such as:

  • The Watchlist, with which you can keep abreast of the indices of your cryptos in the market.

  • Alerts and orders. With these options you are given the possibility to mark an index within the cryptocurrency, which, if the price reaches it, this will be notified to your email or mobile, as you have it configured.

  • Recent activity. It is the section where you will get your last financial movements, when it comes to purchases and sales, as is logical.

The Trade section

Within this section, you can do what you are told below:

  • Visualization of Graphs. This will allow you to take a look at the stock market movement in a not at all complex interface (you can also see the current trend that the market has in terms of sellers and buyers).

As you can see, the trading system within Skrill is not complicated. They are few and simple options, but with the same utility for people like you who do not want to get too entangled in the stock market issue, but to play it safe, but in a simple way.

This tutorial summarizes it this way so that you have a general idea when investing in cryptocurrencies within Skrill.

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