Best Practices: ABC Analysis to set service levels
What is ABC analysis?
ABC approach is used by most planner for analytics and decision making processes normally ranking items by sale ability and profitability. In Streamline, you can drive your purchasing process by group adjusting safety stock levels using ABC-based service level adjustment. The way it works is there is a dependency in Streamline where the suggested purchase quantities partially depend on the safety stock, which is calculated based on the desired service level.
In this video, we covered the best practices of using ABC Analysis to set service levels:
0:01 ABC Analysis
0:29 Adjusting safety stock levels by using ABC Analysis
0:45 Service level set up in Streamline
Benefits of using Streamline:
- Forecast, plan, and place orders twice as fast.
- 90-98% reduction in stockouts.
- 15-50% reduction in excess inventory.
- 35% higher inventory turnover.
- 10-40X ROI in the first year. 100% ROI in the first month.
- GMDH Streamline already manages over $5 billion in inventory for retailers, wholesalers, distributors, manufacturers, and ecommerce worldwide.
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Further Videos:
- How to deal with supply chain processes during the Coronavirus outbreak
- Why switch from Excel to inventory planning software
- Must-read: Smart Supply Chain Management solutions for business processes optimization
- Cross-Functional Alignment in Supply Chain Planning: A Case Study of Sales and Operations Planning [PDF]
- Demand & Supply Management: Collaborative Planning, Forecasting & Replenishment
Still relying on manual work in Excel for planning?
Automate demand and supply planning with Streamline today!
- Achieve optimal 95-99% inventory availability, ensuring you can meet customer demand consistently.
- Attain up to 99% forecast accuracy, getting more reliable planning and decision-making.
- Experience up to a 98% reduction in stockouts, minimizing missed sales opportunities and customer dissatisfaction.
- Cut excess inventory by up to 50%, freeing up valuable capital and storage space.
- Increase margins by 1-5 percentage points, boosting overall profitability.
- Enjoy up to 56 times ROI within one year, with a 100% ROI achievable in the first three months.
- Reduce the time spent on forecasting, planning, and ordering by up to 90%, allowing your team to focus on strategic activities.
