In this blog post I wish to address the importance of making sure that people who are held responsible have the authority to decide! In most companies, you have a purchase or logistics manager who is responsible for the inventory performance. These managers are measured on how efficient they run the entire inventory, which makes […]
Statements like these are excellent for marketing but do they help operations? In my experience, they have become part of most retailers’ and wholesalers’ identity. They help to create environments with extreme focus on doing everything possible to satisfy the customers, a behaviour that is causing some problems in operations. At ABC Softwork, I work […]
It all began with Pareto and the 80/20 principle. The inventor Vilfredo Pareto was born in France in 1848, and no-one expected that he would discover a natural principle which can be applied to almost all fields of science. The discovery was made during a study of how wealth was distributed among the Italian population. In […]
One of the more common questions we at ABC Softwork get is; what is the correct way to categorize products? We would love nothing more than to give a simple answer to this question, but the fact is that there isn’t just one – there are many. Before we can even begin to discuss how to categorize, five questions need to be answered: What is the […]
With the latest version of our software it has become even easier to save, reuse and access previously defined settings and analyses: ABC Project files enables you to pick up where you left off, and share analyses with your colleagues. ABC project file is a new feature in ABC Analyzer, which basically allows you […]
Once you have categorized your products and defined your most (and least) profitable items it is time to apply differentiated mangement policies. But how? Step one is to acknowlegde that each ABC category must be handled differently. Once you have classified all your products using “frequency” (how often an item is picked from your stock) […]