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WORKING-CAPITAL-MANAGEMENT5 MIN READ

Sort SKUs With ABC Working-Capital Logic

Apply ABC inventory logic to prioritize working-capital controls.

Few SKUs, most cash value A tight control B moderate control C simple control Sort each SKU situation into the ABC control level it most deserves. A-item / tight control B-item / moderate control C-item / simple control High annual usage value, long supplier lead time, customer-critical Expensive discontinued part with six months of stock and no forecast demand Medium-value component with stable demand and two qualified suppliers Moderate sales value but seasonal demand that needs pre-season review Low-cost packaging insert used across many orders with easy replenishment Low-value office consumable with local same-week supply Small cheap component that can…

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