Pareto (ABC) segmentation of products within the industrial distribution logistics

The real-world application of Pareto (ABC) analysis in industrial logistics has been scientifically investigated with a special emphasis on optimizing product flows within the industrial distribution sector. Industrial logistics involves the management of materials, products, and information with the aim of increasing efficiency and reducing costs. Pareto analysis that is based on the "80/20" rule, enables the identification of key elements that contribute most to the positive business results, while ABC analysis classifies products into groups according to their importance; A (high), B (medium), and C (of low priority). The research was conducted in a Croatian company specializing in built-in products for the European automotive industry, in the context of optimizing transport logistics. Prioritized products identification enabled better organization, reduced delivery delays, and increased customer satisfaction. The Pareto diagram provided visual support in technical analysis, while the application of the method significantly contributes to the improvement of the interdisciplinary segment of strategic planning of technical logistics processes.