What is an ABC Analysis?

The ABC analysis is a form of concentration measurement. The automated form of the ABC analysis uses the so-called Gini coefficient to categorize a number of objects into three classes (A, B, and C) and to depict the results graphically via a so-called Lorenz curve.

The ABC analysis is frequently used in purchasing to differentiate the most essential, large-scale suppliers from the numerous smaller suppliers. We then refer to ABC suppliers.

They answer, e.g. the following question – which suppliers (A) handle 80% of the procurement volume, which and how many suppliers (B) represent an additional 15% of the volume, and which suppliers (C) handle just 5% of the volume?

SpendControl 2020
SpendControl is a complete Procurement Controlling and Spend Management solution. It provides all functions, KPIs and measures needed for professional Spend Analysis.

With its standardized ERP interfaces you can connect the spend cube of SpendControl within a short time frame to any ERP system (e.g. SAP, Navision, Oracle etc.).
Online Demo

Orpheus Blog

Read blog articles about spend management, initiative management and data management in procurement, or other articles from our experts.

Connect with our experts