CURVA ABC (O Que É e 03 Passos Práticos para Aplicar na sua Empresa Usando o Excel)

ABC curve. It is certainly a tool that helps a lot in our decision making. Mainly for managing and working well both stock and sales.

Therefore, it is an important ally for the success of your business. Helping you reduce costs and greatly increase your profits. So, understand now what ABC Curve is, all its importance and how to apply it to your business in 03 Sure Steps!

Do you want to receive tips and information to set up your own business. So subscribe to this channel and stay on top of everything you need to know to open your own company. To try to make this matter clear to you, we will address the following points: 1.

WHAT IS ABC CURVE? 2. ALL IMPORTANT FOR YOUR BUSINESS 3.

03 PRACTICAL STEPS TO APPLY IT IN YOUR COMPANY (with Excel as an example tool) So, let's go! 1. WHAT IS ABC CURVE?

In short, it is a method for classifying and ordering information and data in terms of importance. In other words, the ABC Curve establishes an order of priorities. That is, it categorizes and prioritizes the items that are most important to the company.

Therefore, focus on what adds more value and brings more return to your business. It is called ABC because each letter represents one of the 3 categories of a curve. Thus, the letter A represents the one with the greatest value or quantity.

The letter B is the middle part and the C represents the one of lesser value or quantity. And when placing this data, a graph in the shape of a curve is built. Then came the name ABC Curve.

But don't worry, because later on, we'll show you how this works in practice. In addition, there is a study that explains that 80% of a company's return comes from 20% of our efforts (which goes for our personal life as well). It's the famous Pareto Principle or the 80/20 rule.

Thus, making a connection between this theory and the ABC Curve, it can be said that: - Class A represents 20% of the items or products to obtain 80% of value or return - Class B represents 30% of the items or products to get 15% of the value or return - Finally, class C represents 50% of the items or products to get 5% of the value or return These values ​​or division that we show now are not fixed and are approximate. Each company uses according to what fits best for each situation. But we show it here just to illustrate, okay?

At the same time, doing this type of analysis, it will be possible to compare your sales with the use of your stock, for example. And this helps to avoid waste, optimize your production and sales. And, consequently, increase your true profits well.

Therefore, we highly recommend watching our practical video on the Pareto Principle. Because it will add a lot to understand and work well with the ABC Curve. So, if you want to watch it, just click on this button up here or on the link we leave in the description.

2. ALL IMPORTANT FOR YOUR BUSINESS Curva ABC helps a lot to organize our stocks. As well as optimizing its use.

As we always say here on the channel, stalled stock is the company's stalled money. And expired inventory is a waste of money. Thus, it is essential to carry out a well-planned inventory control.

Therefore, calculating the products or items that have the highest output is essential. And that's what the ABC Curve helps to do. As a result, it will be possible to very well align your inventory according to your company's sales to your customers.

In the same way, your company's waste will be considerably reduced. Mainly because of the fact of being able to identify which products/items are being used the most. At the same time, they represent 80% of your business's revenue.

As mentioned in the Pareto Principle. Added to this, with well-planned inventories, your company will have more physical space to take advantage of. In addition, it will be possible to have a clearer view of the functioning and progress of your business.

That is, with the clear knowledge of the ideal amount of stock linked to the company's sales, you will focus on where it really matters. Literally, in every part of every process. Whether in inventory control, sales team, administrative and financial, logistics, marketing, in short.

Also, your plans can be worked from concrete information. Both strategic, financial, sales, inventory, among many others. You will notice a very positive difference when the ABC Curve is worked out well.

Whatever your plan. Literally, your company will produce what it really needs. Focus where it really matters.

As a result, your profits will be higher. Mainly because it manages to manage its stock well, avoid waste and closely monitor sales. Thus, your waste will be reduced, the processes optimized and your profits with a larger and significant margin.

In this way, the financial health of your business will be much greater and lasting. 3. 03 PRACTICAL STEPS TO APPLY IT IN YOUR COMPANY There are several tools and ERPs that help you build your ACB Curve.

We even recommend watching our video about ERPs (which are integrated management systems), which greatly facilitate and help your business. However, to illustrate here, let 's use Excel as an example, okay? 1.

LIST PRODUCTS First, list all products or items in your inventory or business. Along with information you deem important. How: • Product/item name or description; • Unit value of the product/item; • Quantity sold in a given period; • Total sale value of the item • Among other information that you deem important here, you can consider the appropriate period for your evaluation.

Be it monthly, quarterly, semiannually, annually, whatever. In our example, let's consider the period of 1 month, okay? 2.

ORGANIZE REPRESENTATIVENESS Now, you need to calculate how important each item is to your company. For this, it is necessary to understand the total value of each product. So, to find this information, let's multiply the unit value by its respective quantity or sale.

For example: this cell multiplied by this other cell. We will do this for each item. And in excel, just select the first cell made and drag to the last item.

Then, to organize it better, let's leave this worksheet in descending value. That is, from highest to lowest according to the Total Amount column. To do this, just select our table, go to Data, Sort, select the column Total Amount, Sort in Values, Order from Largest to Smallest and click OK.

Okay, now we have the table in descending order according to the Total Value of each Product. Now, let's calculate the percentage value that each item represents for your company. And to do this calculation, we first need to find the Total Value of the sum of all products.

Which in this case, is to add up all these individual total values. In excel, just type the following formula: =sum, open parentheses, select all these values ​​and hit enter. Once this is done, to find the percentage that each product represents, just use the following formula: =, selects the cell of the individual total value, divided by the total value of the sum of all products.

And ready. And to do it faster for the other products, first, we need to lock the cell that is the sum of the individual values. In this case, you must include the dollar sign between the letter and number of this cell.

Then, just select the cell in which we just performed this previous formula, come in the corner of it until your mouse pointer turns into a cross, click and drag to the last product. That simple. Then we will find the total accumulated value of all items.

In this case, just add the value of each item to the previous one. For example: the first item will always have the same share as the initial one (since it is the first item, there is no previous product ). Then, just add this share to the next item.

And so on. However , in excel, just select this 2nd cell where we did the first sum and drag it down to the last item in the list. And our ABC Curve base worksheet is done.

3. CATEGORIZE IN “A”, “B” AND “C” At this point, it's time to categorize the items according to what we explained at the beginning of the video. For this example, we will consider: category A will be the products that represent up to 80% of the accumulated percentage of the company's sales .

In B, will be those representing 80 to 95%. And, in C, those representing 5% of the company's revenue. To get to the ABC Curve, just select the products column.

Then, press and hold the “control” button on your keyboard and click on the Individual Participation cell. Once this is done, release your “control” button, go to the final cell of the Accumulated Participation column, press shift and click on this cell . Once this is done, you can release the shift button that all selected cells are ready to turn the graph of our ABC curve.

To do this, go to Insert, then to Charts and choose the bar model. Now, select the columns that represent the Accumulated Participation. Which in our case here, are these orange bars.

Right-click and select the Lines template. And that's it, our ABC curve appeared. So, considering our example, with this graph, we can understand that: - products 1 and 9 are the ones that are in class A.

In other words, they represent a great importance for the company and always need to have stock up to date. And they need to be prioritized. - in the case of products 5, 3, 4 and 2, they fall into class B.

- products 7, 6, 8 and 10 are in class C. yes. Remembering that here, it is up to you to define the best percentage divisions according to your business or what you need, agreed?

Did you see how the ABC Curve is very important for us to really understand the performance of each product of our company? And so, being able to focus where you really need and matter. Also, when necessary, make any adjustments.

However, it is necessary to take some precautions that many companies do not consider. What a great danger. TAKE ADVANTAGE OF OPPORTUNITIES Often, buying opportunities will appear at times when they were not expected.

How suppliers offer discounts, combined purchase, payments under special conditions, among others. Therefore, it is necessary to assess whether it is worth making this type of purchase to take advantage of possible market opportunities. Always thinking about having a great deal for your business to reduce your expenses.

SEASONAL OR PERISHIBILITY FACTORS In addition, it is very important to consider special times of the year. Like Christmas, Mother's Day, Carnival, Black Friday, among many others. Because consumption by customers usually increases a lot.

Therefore, you have to be prepared to not lose sales. Likewise, it is necessary to pay close attention to the perishability of the products in stock. That is, with their due dates.

If a product has a high perishability, which expires quickly, you must be careful not to buy a very large quantity and let them pass the expiration date. If this happens, your company will lose expired products. And as a result, you will lose money.

Being able to balance these points in your management is essential to achieve good results. ALWAYS REVIEW THE ABC CURVE Finally, the ABC curve needs to be constantly reviewed. Whenever possible.

Because the world we live in is very dynamic. Therefore, prices and market behavior are constantly changing. In this way, you need to pay close attention and closely control the management of your inventory and sales.

Thus, monitor, update and make possible adjustments when needed in your ABC Curve. And that's something that many companies don't do. As a result, they end up having constant losses, without being able to understand the reasons.

So, what did you think of the ABC Curve? Leave your comment here to share with us. For sure, when well crafted, the ABC Curve will be an important ally of success for your business, believe me!

In fact, it will help you to have better planning, optimization of processes and resources. Still, great results, every day! And just to recap what we talked about here: 1.

WHAT IS ABC CURVE? 2. ALL THE IMPORTANCE FOR YOUR BUSINESS 3.

03 PRACTICAL STEPS TO APPLY IT IN YOUR COMPANY We hope you enjoyed it! And if you want to know more about how to set up and manage your own business, visit our YouTube channel, we have several videos on this subject, ok? And if you liked it, share this video with your friends and family to help them too!

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