Dynamic ABC Segmentation
ABC segmentation, based on the Pareto principle (80/20 rule), helps organizations optimize resources, cut costs, and improve decision-making by prioritizing high-value items like products or customers. This Power BI Dynamic ABC Segmentation report classifies articles into three categories based on revenue contribution:
- A: High-revenue articles (e.g., ~70% of total revenue)
- B: Medium-revenue articles (e.g., ~20% of total revenue)
- C: Low-revenue articles (e.g., ~10% of total revenue).
Unlike static models, this solution is flexible and dynamic. A What-If Parameter slicer allows users to adjust thresholds (e.g., 80/15/5 instead of 70/20/10), and the segmentation adapts to filters like time period, business segment, or country for relevant insights.
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