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ABC-XYZ Analysis

Identify Importance and Schedulability of Materials

For each material, this application determines the ABC indicator (sales strength) and the XYZ indicator (planability of consumption) and updates these indicators in the material master.

Your Benefits
Functions
Scope
Requirements

ABC Indicator

Determination of the importance of a material according to turnover strength

XYZ License Plate

Determination of the planability of the consumption of objects

Basis for Optimization of Logistics Processes

Avoidance of stock shortages and optimization of ordering cycles

Your Benefits

Derive Fact-Based Action Strategy by Prioritising the Stocks

The ABC analysis is a procedure for inventory classification. It prioritizes the goods according to their economic importance for the company. The ABC indicator classifies a material according to its consumption value as an A, B or C part. In terms of warehouse processes, 20% of the materials generate 80% of the goods movements. The XYZ analysis procedure supports the planning of material requirements as well as warehousing. Thus, optimal provisioning measures and ordering cycles can be determined.

Functions

With the ABC analysis the importance of an object is determined. It is therefore used to classify objects according to certain key figures. The ABC indicator classifies material according to its consumption value as an A, B or C part. The individual values have the following meaning:

  • A - important part, high consumption value
  • B - less important part, medium consumption value
  • C - relatively unimportant part, low consumption value

 

The XYZ analysis is a method for determining the planability of the consumption of an object. It is used for Classification of objects according to certain key figures. The XYZ indicator classifies a material according to its planability as an X, Y or Z part. The individual values have the following meaning:

  • X - good flatness
  • Y - medium flatness
  • Z - low flatness

Scope

The scope of delivery includes:

  • Provision of relevant transport requests
  • Installation guide with description of the technical requirements as well as the necessary import steps
  • User documentation
     

Available languages:

  • Solution (interface, online help and messages): English, German
  • Documentation: German

Requirements

SAP Release:

  • SAP S/4HANA Finance 1503 and 1605,
  • SAP S/4HANA 1511 through 2020 (on-premise edition)

 

Specific Software Components:

  • SAP_FIN: 7.20 - 7.30 or
  • S4CORE: 1.00 - 1.05
  • SAP_ABA / SAP_BASIS: 7.50 - 7.55

 

The solution requires a maintenance contract, which includes info services & change notifications, help desk support and product updates.

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