Everywhere you look, you’ll find the Pareto Principle — also known as the 80/20 rule. 20% of minerals make up 80% of the Earth’s crust, 20% of species are responsible for 80% of the world’s biomass, and in business, 20% of customers generate 80% of profits. The question is, do you know which 20% of your wholesale inventory is driving 80% of your revenue? If not, it’s time to think about ABC analysis.
