How innovative structures can assist in the application of the ABC Curve in logistics
In the hectic day-to-day of companies, keeping the flow efficient is one of the endless tasks of administrators. With the growing demand and the constant transformation of the means of production, it is necessary to continuously create alternatives that facilitate the classification of products and speed up the dispatch of items on a daily basis.
The need is even more visible when the company is growing or needs to innovate. In these cases, the increase in demand requires the application of measures that mitigate problems and develop solutions to optimize production.
An example is the ABC Curve system which, when aligned with the implementation of structures, manages to revolutionize the work environment.
How using the ABC Curve is beneficial
The ABC Curve is a storage system created to implement a way of classifying and identifying products in a certain stock. For this to happen, it must be built in a strategic and specific way for the company in question.
Ideal for companies that require the optimization of the organization, it establishes a way to distribute the items according to specific criteria, such as speed of exit, sales volume or quantity.
It is able to align inventory demands with the management of stored items, so all actions can be coordinated. In this way, it is possible to identify the turnover flow of items and control replacements.
As a result, the efforts dedicated to picking are reduced and employees can dedicate more time to other activities. Consequently, production becomes faster and more organized, reducing waste and ensuring well-stocked inventories.
As a result, there is an improvement in the profit of the warehouse operations and less expenses with loss management actions, keeping the company’s financial health in order.
All this information is passed on to the purchasing department, which is able to analyze the data and establish strategic actions together with the team responsible for marketing. Thus, more attention is devoted to the most important items in the stock, making efficient disclosures and quick replenishments.
Implementing the ABC Curve
The implementation of the ABC Curve represents a transformation of the way logistics centers work. From there, studying the sales volume and understanding the public’s desires is much easier.
However, to bring it into the routine, it is necessary to establish a trail of coordinated practices, preventing data from being forgotten. The ideal is to start by classifying and identifying the number of products and classifying them according to some criterion of relevance to the company.
The most common distribution factor in this administration is sales volume, but profit contribution and replenishment flow can also be used.
From this division, the person in charge must define delivery strategies according to the location and region of destination. This allows an analysis to be made that refines the division of products.
At this point, with all the information gathered and a cohesive strategy for action, it’s time to group the items.
The idea of ??Curva ABC is to organize the products in aisles that go from the most important items, according to the adopted criterion, to the least important.
Here comes the “ABC” of this system:
- Class A: This class names the most important items of its classification, having high turnover and requiring easy access spaces. It represents 20% of the items that have 80% of the importance value of the inventory;
- Class B: This class indicates intermediate items, that is, those that have a good contribution margin to the curve, but are not the most important, being less sought after than A. There are 30% of the items with 15% of value;
- Class C: These are the least important in your division. In many cases they will be the least busy and organized furthest away. They are 50% of the items and have 5% of the importance value. It is necessary to understand that even though they are little accessed, they need regular maintenance, so that they do not get stuck in stocks.
Innovative structures help in the application of the ABC Curve
However, in many large companies this implementation is gradual and slow, because, as it involves the entire logistics center, it depends on coordinated actions so that everything is kept in order.
In these cases, innovative structures, such as handling systems, can streamline this process and minimize errors. With no need to worry about the movement of loads, employees dedicate more efforts to categorizing and identifying products.
They also help administrators coordinate actions strategically. The warehouse ends up transforming into a complex system that works independently and nimbly.
Storage locations are determined in advance, items are quickly selected and identified, and employees have easy access to the highest-selling products. All these actions ensure faster deliveries and more satisfied customers.
In this way, all changes work in a chain, bringing changes to the others, one by one, in a continuous way.
Dynamic System, Push Back, Rack supported buildings with stacker crane, Mini Load and Drive in, work together with the ABC Curve to create a strategic distribution center. For this reason, having high quality structures is a competitive differentiator in the current market.
At Águia Sistemas you will find handling and storage systems adapted to your needs, optimizing efficient production and maximizing results.
(The text above was constructed with information from the websites blog.egestor.com.br, iesp.edu.br, senior.com.br and patrus.com.br)