From slow movers to fast movers: why you shouldn't procure every article the same way.
The key points
- Fast movers and slow movers deserve opposite ordering rules, not uniform planning.
- Fast movers (AX): high service level, automated, frequent small orders.
- Slow movers (CZ): low stock, no growing buffer, actively check phase-out.
- The classification is provided by the ABC/XYZ analysis; the consequence is the fitting ordering rule per class.
How do you plan fast movers?
Fast movers (typically AX) carry your revenue and have stable demand. Here a high service level pays off, and because the pattern is plannable, replenishment can largely be automated: frequent, small orders keep stock low without endangering supply capability. The safety stock is manageable because the dispersion is small.
What do you do with slow movers?
Slow movers (typically CZ) tie up capital that barely works. The wrong reaction is a growing safety stock out of fear of shortages. The opposite is right: minimise stock, think in bulk packs instead of permanent stocking, and regularly check the phase-out. Some slow movers are service items for key customers; most are legacy burdens.
How do you steer both at once?
Not by hand, article by article, but via rules per class. The ABC/XYZ analysis divides the assortment, and inventory planning stores the fitting strategy per class. So every article automatically gets the rule that suits its behaviour.
Check your top-10 capital binders: alarmingly often they include articles that make hardly any revenue. That's exactly where the fastest stock reduction sits, without supply capability suffering.
Keep reading
ABC/XYZ analysis: a steerable assortment in 4 steps.
Inventory & PurchasingNever out of stock again: automatic demand forecasts in EazyStock.
Inventory & PurchasingInventory forecasting: forecasting with fluctuating demand.
Inventory & PurchasingInventory optimisation in 3 steps: forecast, optimisation, procurement.
Inventory & PurchasingInventory planning: the second step in inventory management.
Inventory & PurchasingLogistics vs. supply chain management: definition and differences.
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