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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- Up to 98% reduction in stockouts.
- Up to 50% reduction in excess inventory.
- 1-5 percentage points margin improvement.
- Up to 56X ROI in one year. 100% ROI in the first 3 months.
- Up to 90% reduction in time spent on forecasting, planning, and ordering.