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 […]
Best practice: Bevola A/S has reduced inventory levels dramatically through special agreements with key subcontractors. What is most surprising is that the new agreements are for mutual benefits. Bevola, a Europe-based manufacturing company offering products and solutions for the transport sector, has reduced inventory levels on their most important products (AA […]
26 of March 2010 we are hosting a workshop at the conference Lageroptimering 2010. Join in on the afternoon session and learn more about Differentiated Purchasing Strategies and Inventory Management. The conference is hosted in Taastrup just outside of Copenhagen. Sign up here
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 […]
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) […]