𝐇𝐨𝐰 𝐂𝐚𝐧 𝐘𝐨𝐮 𝐒𝐮𝐠𝐠𝐞𝐬𝐭 𝐭𝐡𝐞 𝐑𝐢𝐠𝐡𝐭 𝐑𝐞𝐨𝐫𝐝𝐞𝐫𝐢𝐧𝐠 𝐏𝐨𝐥𝐢𝐜𝐲 𝐭𝐨 𝐘𝐨𝐮𝐫 𝐂𝐥𝐢𝐞𝐧𝐭?

This is where 𝑨𝑩𝑪 𝑪𝒍𝒂𝒔𝒔𝒊𝒇𝒊𝒄𝒂𝒕𝒊𝒐𝒏 becomes the 𝘣𝘦𝘴𝘵-𝘱𝘳𝘢𝘤𝘵𝘪𝘤𝘦 foundation during Dynamics 365 Business Central implementations.

🔍 𝐒𝐭𝐞𝐩 1: 𝐀𝐩𝐩𝐥𝐲 𝐀𝐁𝐂 𝐂𝐥𝐚𝐬𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧

𝐀 𝐢𝐭𝐞𝐦𝐬 → High value, low volume, high risk

𝐁 𝐢𝐭𝐞𝐦𝐬 → Medium value, steady demand

𝐂 𝐢𝐭𝐞𝐦𝐬 → Low value, high volume

🔗 𝐒𝐭𝐞𝐩 2: 𝐂𝐡𝐨𝐨𝐬𝐞 𝐑𝐞𝐨𝐫𝐝𝐞𝐫𝐢𝐧𝐠 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬 𝐔𝐬𝐢𝐧𝐠 𝐀𝐁𝐂 𝐋𝐨𝐠𝐢𝐜

🔴 𝐎𝐫𝐝𝐞𝐫 → 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫 𝐀 𝐈𝐭𝐞𝐦𝐬

𝐖𝐡𝐞𝐧 𝐭𝐨 𝐬𝐮𝐠𝐠𝐞𝐬𝐭 𝐢𝐭:

▪️ Make-to-order items

▪️Expensive components or subassemblies

▪️Drop shipments or special orders

▪️Top-level manufacturing items

𝐄𝐱𝐚𝐦𝐩𝐥𝐞:

Leather couches in a furniture store - high value, irregular demand, and no inventory tolerance.

𝐖𝐡𝐲 𝐢𝐭 𝐰𝐨𝐫𝐤𝐬:

Each demand is planned individually. No excess stock. Full control.

🟠 𝐋𝐨𝐭-𝐟𝐨𝐫-𝐋𝐨𝐭 → 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫 𝐁 𝐈𝐭𝐞𝐦𝐬

𝐖𝐡𝐞𝐧 𝐭𝐨 𝐬𝐮𝐠𝐠𝐞𝐬𝐭 𝐢𝐭:

▪️Items used across multiple BOMs

▪️Regular demand but noticeable carrying cost

▪️When unsure which policy to start with

𝐄𝐱𝐚𝐦𝐩𝐥𝐞:

Dining chairs - consistent sales, but too costly to overstock.

𝐖𝐡𝐲 𝐢𝐭 𝐰𝐨𝐫𝐤𝐬:

Demand is bundled over a planning period, helping negotiate better vendor pricing.

👉 ~80% of items can successfully use this policy.

🟢 𝐅𝐢𝐱𝐞𝐝 𝐑𝐞𝐨𝐫𝐝𝐞𝐫 𝐐𝐮𝐚𝐧𝐭𝐢𝐭𝐲 → 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫 𝐂 𝐈𝐭𝐞𝐦𝐬

𝐖𝐡𝐞𝐧 𝐭𝐨 𝐬𝐮𝐠𝐠𝐞𝐬𝐭 𝐢𝐭:

▪️Low-value, fast-moving items

▪️Combine with reorder-point parameters

▪️Lowest-level manufacturing components

𝐄𝐱𝐚𝐦𝐩𝐥𝐞:

Tea cups or packaging material — cheap, predictable, always needed.

𝐖𝐡𝐲 𝐢𝐭 𝐰𝐨𝐫𝐤𝐬:

Keeps inventory above a minimum level and guarantees availability.

⚠️ Consultant caution: Avoid this policy if items are frequently reserved far in advance - reservations can disturb planning accuracy.

🟢 𝐌𝐚𝐱𝐢𝐦𝐮𝐦 𝐐𝐮𝐚𝐧𝐭𝐢𝐭𝐲 → 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫 𝐂 𝐈𝐭𝐞𝐦𝐬 𝐰𝐢𝐭𝐡 𝐂𝐨𝐧𝐬𝐭𝐫𝐚𝐢𝐧𝐭𝐬

𝐖𝐡𝐞𝐧 𝐭𝐨 𝐬𝐮𝐠𝐠𝐞𝐬𝐭 𝐢𝐭:

▪️Low-value items but high carrying cost

▪️Storage or space limitations

▪️Need tighter upper control

𝐄𝐱𝐚𝐦𝐩𝐥𝐞:

Teacups again - but with limited warehouse space.

𝐖𝐡𝐲 𝐢𝐭 𝐰𝐨𝐫𝐤𝐬:

Inventory stays between reorder point and maximum quantity, preventing overstock.