ABC Inventory

CIOP training and certification program is delivered over 90 hours of classroom/online training in corporate and retail batches. The uniqueness of this program is that it addresses the modern supply chain trends without loosing the traditional aspects. This program prepares the participants for supply chain management in 2025 and beyond by infusing the learnings need in the areas of industry 4.0 such as Internet of Things (IoT), Blockchain, Artificial Intelligence (AI), Machine Learning (M/L) and Robotic Process Automation (RPA). It also deals with process improvement philosophies, methods, and tools such as Microsoft Visio. The program deals with almost 50+ supply chain analysis techniques.

ABC inventory management is a method which is designed around putting items into various categories according to their importance, D being the lowest and A being the highest. Once the items have been sorted by category, they are then moved to the ABC warehouse where they are put into storage according to their ranking in terms of importance. It is only after this that the items can be placed on display for the customers and other personnel who need them.

This method of ABC inventory management has a number of advantages. First of all it allows you to keep a close eye on the supply chain. It is only through this close monitoring that you will be able to determine whether there is any deviation from the supply chain and whether any supply problems should be resolved quickly so that your company doesn't suffer any heavy losses due to these deviations. This will not only ensure that you don't suffer any losses but it will also help you understand the nature of the problems you might be encountering and take necessary corrective measures so that they don't increase in frequency or severity in the future. Furthermore, it is through this ABC inventory analysis that you can establish the exact cost of the raw materials that you require for production and work out what your overall budget should be based on this information.

ABC inventory uses historical data to establish the relationship between the costs of supply and the fluctuations in demand, both of which allow the company to establish feasible plans based on available inventory, demand and other factors. This analysis also helps in determining the amount of spare inventory that is available for use in case some supply becomes obsolete. ABC inventory management helps to provide better control over the over supply, and when it becomes relevant, the use analysis helps in replacing it with higher quality or new inventory that is relevant according to the particular requirements. Therefore, when you are considering ABC inventory management, it is important that you seek the services of a professional service provider who can help you analyze your current inventory and make suggestions as to how you can improve management efficiency and eliminate the obsolete inventory. The more your efforts are focused towards achieving better control over your business operations, the more likely you are to achieve your goals and improve profitability.

Related Articles

ABC Inventory Management: Software, Analysis & Classification
ABC Inventory Management
The importance of ABC analysis in inventory management
ABC Analysis – Method of Inventory Control and Management
ABC Analysis - Inventory