Benefits of ABC analysis for IBP revealed in new White Paper from Oliver Wight
Business improvement specialists, Oliver Wight, have published their latest white paper entitled ‘ABC for Integrated Business Planning - Focusing on What is Important’. The paper looks at how ABC analysis is the perfect tool for formalising processes, focusing on the things that matter most and establishing clarity across the business.
The paper authored by Rod Hozack of Oliver Wight Asia Pacific explains how ABC Analysis can be put into practise for “any business in any industry”. Hozack discusses the classifications for ABC and the ‘rules’ for a priority-setting process. One way of aligning priorities is by using the well-known Pareto principle. The 80/20 rule is highlighted by Hozack as a formal way to control priorities by focusing time and attention on the right things that will have the largest impact.
“ABC analysis is traditionally seen as an operations or supply chain activity, and typically is done at a volume finished-goods level, if at all. Yet, it is virtually impossible to run a business without having some sort of priority-setting mechanism.” explains Rod Hozack. “Without a formal mechanism, people guess or make generalisations to get by. ABC analysis can help stop second-guessing so that informed business decisions can be made accordingly.”
Hozack identifies in the white paper areas within a business, beyond product, that ABC analysis can be applied to including: suppliers, creditors, customers and business services to name just a few. As a starting point for a business Hozack provides direction in how to begin formalising the process along with tables to show different strategies. He concludes the paper by noting that ABC is just the fist step “the second is testing against strategy and common sense, and the third is to define the behavioural expectations.”
Download a copy of the full white paper here: http://www.oliverwightasiapacific.com/en-GB/news-blog/white-papers/m/product/view/96
Dana Henderson
Oliver Wight AP
61 (0) 3 9596-5830
dhenderson@oliverwight-ap.com
www.oliverwight-ap.com
Caroline Cross
RONIN Marketing Limited
44 (0) 20 3326 5039
caroline@roninmarketing.co.uk
www.roninmarketing.co.uk
About Oliver Wight
At Oliver Wight, we believe sustainable business improvement can only be delivered by your own people; so, unlike other consultancy firms, we transfer our knowledge to you. Pioneers of Sales and Operations Planning and originators of the fundamentals behind supply chain planning, Oliver Wight professionals are the acknowledged industry thought leaders for Integrated Business Planning (IBP).
Integrated Business Planning allows your senior executives to plan and manage the entire organisation over a 24-month horizon, while Oliver Wight’s extended Supply Chain Planning and Optimization ensures your supply chain is designed and structured to deliver best-in-class customer service with minimal costs. Using the Oliver Wight Maturity Model to pursue our globally recognised Class A standard for best practice will determine a tailored improvement journey for you to develop your organisation’s processes, and reach and sustain excellent business performance. With a track record of more than 40 years of helping some of the world’s best-known organisations, Oliver Wight will help you define your company’s vision for the future and deliver performance and financial results that last.
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