🎯 The Online School for Supply Chain Experts & Leaders 🚀 Boost your skills & careers in less than 4 weeks 🚀 🌍 +130K professionals use our tools & methods 🌍 👨👩👧👦 Thousands of members part of the AbcSupplyChain family 👨👩👧👦 🎯 Keep it simple with real-life examples and 20/80 approach 🎯 😌 Reinventing more efficient and regenerative supply chains ⚖️
► Your challenges -How to optimize your Supply Chain ? -How to improve your inventory management ? -How to increase your service rate ? -How to improve your forecast accuracy ? -What tools & software to use ? -How to boost your career and get your dream job ?
► For the last 15 years, no matter which countries, size of the company or industry, I got these same questions while I was working as : -Warehouse worker -Demand Planner -Supply Chain & Logistics Project Manager -Supply Chain Manager -S&OP Manager -Supply Chain Director -Supply Chain Consultant -Entrepreneur -RU-vidr 🫣
Hello Edouard, thank you for explaining these fundamentals. This video, in combination with your other lessons, really help to have a holistic image of supply chain. However, I'm not a big fan of all those Excel tabs and data entry. I would like to have this combined with Power Query and later Power Bi. for automatic data- and report generation. Is this something you could do a course on as well?
If I’m in Manufacturing and want to apply EOQ variation to decide how much to produce. What LT should I use? The cycle of production? (If I run X stock once a week for instance)
Hi! Mmmh not really, slow moving KPI period should be taken according to your general inventory turnover. For example 3 months if your business has a quick turnover, or 12 if it is longer. And it is calculated on active products (not expired products or product not yet launched). So that period is not related to manufacturing date or expiry date
Hii Ed!! Im Ravi from india i have completed ma bachelor degree in commerce filed and i have a plan to pursue my masters in logistics and supply chain in abroad? What skills require to get job and PG diploma is better thaan masters? Give me answer Ed 🙌
Hey Ravi, check out the webinar I did a few weeks ago on how to become an expert & leader in supply chain 🚀: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-y-cSTDPTEsQ.html
I've just came across your channel and what are the odds! I came from an inventory planning and allocation analyst level position (presently), and I'll start my new job as demand planner in August. Wish me luck! I'll be binge watching your videos during these days!
Iam struggling with this because I have more than one item of the same item ( e.g. I have 27 of item 1. And 24 of item 2!! This misleads the ABC grouping. Should I separate these by creating the same row 27 times?
Thank you sir for your amazing video, it's so helpful and well-explained! My question is: The factory I work at uses a weekly production plan, so can I use the unit 'sales/month' unit? if not, then how can I calculate safety stock for sales/week unit? thank you
Hi! well if you use a week period instead of a month period, then it is fine. At the end you just need to use an average/day (which can be an average over a week period)
question y must have a category of Seasonality ABC -> Consumes XYZ -> Variation of Consumes What other element do you consider relevant apart from consumption and variability of consumption? Example i think something like Seasonility (but is nearly similar to Variation of Consumes) DEF -> Seasonality
XYZ is used to assess the uncertainty of your products. There is no such thing as adding a category for seasonality. If you want to be more precise, you can use forecast accuracy instead of the coefficient of variation in the XYZ classification. Thus, the uncertainty is assessed with the level of accuracy of your forecast
I love the Method 3, but i have a question about a HIGH Level of Demand Standard Deviation Or when my consume "Sales" have some period without it cause of some factors like Stock Break, change of another product, Etc
Thank you for the feedback. If you have high level of demand standard deviation, then the formula remains the same, you will just have higher safety stock. If you have stockouts as you say, you may want to clean your past sales (get rid of the 0, =stockout correction) before calculating your safety stock, to capture unconstrained demand
Power BI is primarily a Business Intelligence (BI) tool, designed to visualize data rather than to calculate it. While it does offer some basic automatic forecasting features, they are relatively simple and not highly customizable. This is somewhat akin to the basic forecasting options available in Excel. However, unlike Excel, where you have more flexibility to tweak and tailor your forecasts, Power BI’s capabilities in this area are more limited.
Hello Edouard, Thank you so much for these videos. I had a doubt regarding calculating average inventory value. I have the exact quantity of materials procured in a particular month. Can I use this value in place of average inventory value?
Hi, yes you can use Qty as I say in the video. But I recommend to work in Value whenever possible, so if you have the purchase price of those items then use it and COGS to calculate Inventory turnover
As you wish. It depends on the context and your audience. Days of Coverage might be more understood by people not familiar with inventory management jargon. It intuitively suggests how many days the current inventory will last under normal operation conditions. Stock Turn in Days refers to how many days, on average, it takes to sell the entire inventory. In the end, it is the same.
Thank you for our great videos. All of them are so informative, educative, easy to understand. I am waiting for more supply chain analysis (IKea vs Home Depot, Walmart vs Target...)
@@abcsc in many literatures Inventory/stock turn and Inventory turnover are used interchangeably meanwhile inventory days refer to the average amount of time in which a company’s inventory is held on hand until it is sold. And I am not meet the case that inventory cycle is used as inventory turnover. In your video you used inventory cycle and stock turn in days/in weeks instead- it's a little confusing as you have mentioned. Especially the formula at 3.30 may be wrongly understood by students
@@GoldenMouse-1001@GoldenMouse-1001, indeed, there are many ways to say the same thing. Sometimes, it emphasizes different aspects of the measurement. In the end, the main difference is whether you calculate the ratio or the count of days. I like "Stock Turn" because it's short and concise. In my courses, I always tell my students I prefer using days because ratio is not intuitive. So I don't need to specify "stock turn IN DAYS" each time. I just don't like jargon and endless theory , keep it simple 😉
Hi Edouard I moved to US from India recently I have procurement and sourcing experience in manufacturing Finding hard even to get a entry level job Can you guide me ?? I can share my Resume for a review .. I Need help !!
Hi Tamil ! You're facing a common issue that many of my students have faced before. What I always recommend is to identify the key skills recruiters are searching for. Then you need to prove your expertise. Optimize your LinkedIn, put forward the certifications and skills you have and your past results (with numbers!) from your previous missions.
Thanks for your comment ! Best of luck with your career change. We just recorded you a video with my team : www.loom.com/share/536d7aeea0d649d28b104ca2bebc60fa?sid=edbbb506-cfdd-4636-b20c-c4898a14f9b1
Will be the best decision you’ve ever made! I did this 5 years ago , doubled my salary and never looked back! Just remember corporate culture is the opposite of warehouse bluntness.. so keep that in mind
@@abcsc I have 13 years of experience in Healthcare Purchasing now I feel like this job is stagnant. I just wanted to shift to other industry but not able to move. I feel struck. I just wanted to how can I move to other industry
@@designeraddress To unblock yourself, you need to have the strategic skills companies are looking for such as Inventory Management, Forecasting and Data Analysis. If you are unsure of your level on these topics, we built free assessments you can check out here : abcsupplychain.com/courses-supply-chain-logistics/#Assessment . Also make sure that your LinkedIn profile reflects these skills
Thank you so much for your video Eduardo, very impressive and easy to understand. I am familiar with six sigma and normal distribution, so this is an excellent example of its application in inventory control. Just one comment, considering your example, could you kindly explain why is the reorder point so big (1,345)? Should it be a complement for the annual (12,000) or monthly demands (1,000) or the EOQ value? Thanks for your great work!
Hi Tomas, thank you very much for your positive feedback. The Reorder point is "big" because the lead time is "big" too. You need to cover the average demand, which is 1000/month. The lead time is 35 days or 1.15 months. 1000*1.15=1,150. Which is the minimum value you need without safety stock. With safety stock, it is 1,345
Hi! This is just the count of items delivered that do not meet the quality specifications agreed upon with the supplier, without any categorization of the defects.
