Choose what value means
ABC analysis groups items so teams can focus their reviews. One common basis is annual consumption value: units used during the period multiplied by unit cost. Sales revenue is a different measure; do not mix it with cost in the same ranking. Agree the reporting period, currency and treatment of returns first.
Work through a small example
If item A has 100 units used at R50 each, its consumption value is R5,000. Item B with 300 units at R10 totals R3,000. Sort all items by the chosen measure, calculate each item's share of the total and review the cumulative share. There is no universal percentage split that every warehouse must follow.
Add operational judgement
A low-value spare part may stop production when unavailable. Perishable, regulated or long-lead-time items may need more attention than their financial class suggests. Record these exceptions instead of letting a single A, B or C label decide every purchasing and counting decision.
Turn the analysis into work
Assign review frequencies, count priorities and an owner for each class. Revisit the grouping when demand or supply changes. Ask to see the exports and fields needed for your calculation during a VasKem demonstration; this guide does not promise a one-click ABC report.