1. ABC inventory analysis is a method used to classify a business’s stock items into three categories – A, B and C, based on their value to the business.
2. A items are the most important in terms of the value they bring a company, whilst C items are the least valuable.
3. ABC inventory analysis is important as it helps managers focus their time on their most valuable / important products and adapt their inventory control policies accordingly.
1. A sales forecast is a prediction of future sales revenue. Sales forecasts are usually based on historical data, industry trends, and the status of the current sales pipeline. Businesses use the sales forecast to estimate weekly, monthly, quarterly, and annual sales totals.
2. New businesses that don’t have much data about their own sales process may need to rely on industry averages or even educated guesses. On the other hand, more established companies can use their historical data to model future performance.
1. Inventory demand forecasting is the process of predicting customer demand for an inventory item over a defined period of time.
2. Accurate inventory demand forecasting enables a company to hold the right amount of stock without over or under-stocking, for optimum inventory control.
3. Historical data trends and market knowledge of how demand can fluctuate are often used to forecast inventory demand.
4. Forecasting inventory can be as basic or as complex as you make it.
5. As a simple rule, the more sophisticated your inventory forecasting techniques, the more accurate your predictions will be.
6. Accurate demand forecasts allow you to efficiently serve customers’ needs without investing capital in large amounts in stock, effectively helping you lower your overall operational costs.
7. However, inventory forecasting can be challenging to undertake without the right guidance, so starting with basic forecasting techniques is advisable.
1. There are many ways to forecast business trends and all of them fall under two extensive categories like qualitative & quantitative. Let’s discover more about these models:
1. Launched in June 2001, the Global Trader Programme is a merger of the Approved Oil Trader (AOT) and the Approved International Trader (AIT) programmes which started in 1989 and 1990 respectively.
2. The Approved Oil Trader (AOT) Programme aimed at capitalising on Singapore’s growing role as a refining centre in the region.
3. Shortly thereafter, the Approved International Trader (AIT) Programme was launched to attract non-oil companies.
4. Twenty years later, both the Programmes were merged into the GTP which now allows for an expanded product base for companies to trade in, including both energy as well as non-energy products and commodities.
1. Innovative new technologies are laying the foundation for the latest hydraulic systems and applications designed for construction, agriculture, mining and power generation.
2. From smart user interfaces to load sensing valve technology to hybrid actuation systems for renewable energy applications, these solutions lead to productivity increases, energy savings and maximised operational efficiency.
3. From smart user interfaces to load sensing valve technology to hybrid actuation systems for renewable energy applications, these solutions lead to productivity increases, energy savings and maximised operational efficiency.
1. Building ‘new infrastructure’ (新型基础 or新基建 for short) has recently become a top development priority for China – and refers to infrastructure that is ‘digital, smart, and innovative’.
2. As part of its post-COVID-19 relief package, China is ramping up plans to construct new digital infrastructure across the country – including building 5G networks, artificial intelligence (AI), Internet of Things (IoT), intercity high-speed rail, and setting up research and development institutions.
3. In doing so, a new wave of government support for private sector participation can be seen – through the issuance of special bonds, encouraging public-private partnerships, or extension of credit support.
4. These plans work in concert with China’s other industrial policies like Made in China 2025 and China Standards 2035 Plan – which together signal China’s ambitious long-term strategy of becoming the global leader in high-tech and innovative industries of the future.
5. New opportunities now exist for early investors looking to participate in these fast-growing technology industries and subsectors. In addition, large industry players have the chance to invest in projects that will propel the commercialization of emerging technology.
6. Foreign investors should continue to follow-up on the latest policy developments in their target area of investment, as more government policies will likely be released shortly to guide the development of each of these new technologies.
1. AEO stands for Authorized Economic Operator. Different countries have different versions of this program. In the United States it's called the Customs Trade Partnership Against Terrorism (CTPAT).
1. Incoterms are universally recognised rules. They guide buyers and sellers when formulating and fulfilling a contract for the shipment of goods. A careful study of INCOTERMS 2020 will repay the effort by enabling more favourable trade terms.
2. It allows the manufacturer and buyer to open the doors to more effective trade finance. Trade Finance helps importers and exporters with international commerce activities.
3. The definition of InCoTerms (International Commercial Terms) was first introduced in 1936 by the International Chamber of Commerce (ICC). Incoterms 2020 marks the first update since 2010 to keep pace with the continually evolving global trading landscape.
4. The latest version of the rules came into effect on 1st January 2020. It consisted of eleven separate Incoterms, with some specific revisions that are worth addressing.
5. Incoterms 2020 rules make security more prevalent by listing import and export requirements. Also, they help in distinguishing whether the buyer or seller is responsible for meeting each of those requirements.
6. The two main categories are Any Mode of Transportation and Sea & Inland Waterway
1. Transit Oriented Development (TOD) is a way of developing, financing and delivering transport infrastructure projects.
2. It has gained popularity – particularly in the Far East and parts of the United States – over the last 15 years.
3. This popularity is set to soar as project owners and governments continue to search for novel ways of financing transport infrastructure developments.
The Government is introducing greater flexibility in land use so as to accommodate the diversifying space requirements of the innovation economy. It is introducing the Master Developer approach to develop districts based on land use and gross plot ratio.
1. Fragmentation of systems and lack of common documents in international trade cause significant inefficiencies and resultant loss of revenues.
2. Improving both B2B and business-to-government (B2G) information exchange through the supply chain could increase global trade volumes and GDP.
3. The obstacles to implementing such exchanges are not technological, but rather are caused by lack of standardization and incentives for information sharing.
4. For a broader roll-out of e-supply chains, global leaders in each supply chain step should work together on practices for sharing information and agree on joint standards.
5. While initial e-customs efforts are a step in the right direction, they need to accelerate, be more ambitious and include businesses to deliver maximum benefits.
6. The TATLO concept is not new, and many of the technologies exist for implementing it. However, a lack of standardization and sharing of norms is preventing the seamless flow of information and the use of protocols, both of which could turbocharge the process.
1. The past decade has seen residential Master Developers (MDs) playing an increasingly important role in the UK’s development market, helping to accelerate housing supply through the delivery of strategic housing led developments.
2. Those acting in the role of MDs are responsible from first conception and planning, all the way through to the implementation of these major projects, either through direct development or serviced land sales.
3. We find that there have been many factors that have contributed to a prevalence in this kind of large-scale strategic development in the past decade.
1. Supply Chain and Logistics terminology can seemingly not keep up with the rapid evolution of the industry. For years we have become accustomed to organisations adopting 3-or-4PL business models, but of late abbreviations such as 5, 6 and even 7PL beginning to become part of the logistics lexicon, but what exactly to do these terms mean?
1. Manufacturers are responsible for a variety of complex business requirements, including tight time-to-market schedules and improving the cost of quality.
2. Manufacturing technology leaders now have the ability to transform the way the plant floor operates with analytics, dashboards and manufacturing intelligence that provide insight from the bottom up.
1. Organizations that want to get started quickly with machine learning may be interested in investigating emerging low-code options for AI.
2. While low-code techniques will never completely replace hand-coded systems, they can help accelerate smaller, less experienced data science teams, as well as help with prototyping for professional data scientists.
1. Banks’ futures depend on institutions’ ability to master three key things – customer experience, compliance, and storage.
2. strategic default models were a waste of time and money, not because they were inaccurate, but because the parties involved failed to anticipate how offering one customer an attractive loan restructure would influence other customers who hadn’t yet defaulted. The analytics didn’t fail. The implementation strategy did.
1. Utilizing consolidation warehouses can improve your supply chain’s performance while reducing costs.
2. This form of warehousing involves combining small shipments bound for a similar destination into a single truckload.
3. As a result, you can reduce transportation costs, ship more frequently, and, eventually, boost your profitability.