ABC Codes

We are going to start setting up ABC codes for cycle counting. Does
anyone have any advice or useful tips? I would also be interested in
any problems that you encountered. We are on 4.0.

Thanks,

Juliet Martin
Rosenboom Machine & Tool, Inc.
1530 Western Avenue
Sheldon, IA 51201
712-324-4854
www.rosenboom.com
jmartin@...
I personally think a good rule of thumb is to base abc codes on highest
dollar of usage or sales. It is important to keep them manageable say for
example something like 100 - 300 A items, 200 - 300 B items and the rest
will be C items. My experience is this works even for companies with several
thousand-part numbers. Make any long lead-time or import items A also

Regards,

Keith
Juliet:

We started using ABC codes about 1 1/2 years ago (we are still on Vantage
3.0). We really like it. We were counting our ENTIRE inventory every 4-6
months prior to that, and things were still wrong. We replaced our
Inventory clerk and started cycle counting. We had to tweak a few of our
part numbers that we wanted to keep track of, in spite of low value, but
other than that, it's been one of the smoothest transitions we've made. We
did do our own little Report Builder count sheets, because we didn't want to
make count tags each time. With the sheets, they can be stored all
together, instead of dropped into part bins, lost, so on. Also, we print
one without quantities for the "counter" and one with expected quantities
for the "checker." Even our CPA's are impressed. Our inventory variances
went from $40,000+ per year to around $100 per month. The other thing we
like is keeping track of the big ticket items more often, mistakes are
easier to reconcile etc.

Anything else, please contact me off-list.

Lydia Coffman
Canyon Engineering Products, Inc.


We are going to start setting up ABC codes for cycle counting. Does
anyone have any advice or useful tips? I would also be interested in
any problems that you encountered. We are on 4.0.

Thanks,

Juliet Martin
Rosenboom Machine & Tool, Inc.
1530 Western Avenue
Sheldon, IA 51201
712-324-4854
www.rosenboom.com
jmartin@...




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We are beginning the use of ABC Codes prior to year-end inventory. (version
3.0) I am looking for warnings or suggestions on how this has worked for
your monthly counts and perpetual inventory.