When is XYZ analysis performed?

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XYZ analysis is performed in cases where a company needs to assess the degree of predictability and variability of demand for their goods or services.

Inventory management. Companies, especially those with a wide range of products, can use the study to optimize inventory management. This analysis helps forecast demand for products with varying degrees of predictability.
Production Management. For companies that manufacture goods, it helps with production planning and production resource management. This allows them to better cope with changes in demand and minimize the risks of excess stock or shortages.
Marketing and Sales Management. Marketers and sales teams can use XYZ analysis to develop more accurate marketing strategies and sales planning. It helps determine which products or services have stable demand and kenya email list which are less predictable.
Financial management. Financial analysts can use the analysis to forecast revenues and create budgets. This analysis helps assess the financial risk associated with changes in demand for goods and services.
Risk management: Allows companies to better understand which products or services are more susceptible to changes in market conditions and take appropriate risk management measures.
Logistics management. In the logistics field, it can be useful for optimizing supplies and inventory. It helps to plan and manage warehouse stocks and delivery of goods taking into account the predictability of demand.