This page allows you to analyze and adjust segmentation of customers based upon the scale of their demand (ABC)–history or forecast.

Use this page to segment the product portfolio based on an ABC classification. This suite of dashboards provides functionality to manage product and customer segmentation. Segmentation definition is managed by setting Pareto values for ABC classification for products and customers.

The application can then use demand history to automatically apply ABC classification. You can apply ABC values that were added from ERP. You can also adjust values where needed, according to rules that can be managed at the global level.

The parameters are shown in the Effective Parameters card. You can configure the parameters in the Edit Parameters card. When you update parameters, the new values are shown in the Effective Parameters card, and are applied globally.

ParameterValues
Current ABC Selection

Select the ABC Selection:

  • ERP Imported: The ABC classification, is generated from the ERP system or source system.
  • System Auto Generated: The system generated ABC categorization. This takes all the sales order history and divides the selected history into the relevant ABC classification.
  • Updated: The ABC classification from the ERP system. These values are updated using the System Auto Generated classification.
Update Basis ABC: Customer

Select how ABC classification is updated:

  • Overrides Only: Only updates items where Override ABC is populated.
  • System and Overrides: Updates all displayed items.
Periods for ABC CustomerEnter the number of periods used to calculate the ABC customer classification.
Data for ABC Customer

Specify either:

  • Selected History (U): To enter the selected history in units.
  • Selected History (R): To enter the selected history in revenue.
  • Prior Forecast (U): To enter the prior forecast in units.
  • Prior Forecast (R): To enter the selected prior forecast in revenue.

Pareto Analysis 

The Pareto Analysis Graph All Customers (Refresh) displays Pareto analysis by demand revenue for all customers.

ParameterDescription
Selected DataRevenue by customer for the number of periods defined in Effective Parameters: Periods for ABC: Customer.
Cumulative PercentageThe cumulative Pareto percentage curve.

Select Update Prior Forecast for ABC to Import Prior Forecast for calculation of ABC.

Current System Recommendation

The table displays ABC customer segmentation. You can determine the level of customer hierarchy by selecting a customer from the context selector at the bottom of the table. The selector is synchronized with the selector in the chart panel. 

The data displayed in the table is color-coded:

  • Green
  • Yellow
  • Red

The chart provides a graphical view of ABC customer segmentation. You can also select the context for the values alongside the customer selector.

ParameterDescription

Count of Customers


The number of customer records by ABC segment in the selected customer hierarchy.
Sum of DataThe sum of the revenues by ABC segment.
% of TotalThe percentage of the total demand history by ABC segment.

Steps

To update chart, select Update Chart. This runs processes to update the ABC values on the page.

To update prior forecast, select Update Prior Forecast for ABC. This runs a processes to update the ABC values in the system.

Additional information

Refer to the related page here: