Improving Ordering Processes at Chez Marius Through Data Analysis and Categorization
Selin, Mika (2018)
Selin, Mika
Haaga-Helia ammattikorkeakoulu
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201805219180
https://urn.fi/URN:NBN:fi:amk-201805219180
Tiivistelmä
The current ordering processes at Chez Marius, a Helsinki-based kitchenware company, date back to the beginning of the company 20 years ago. A lot has changed since those days, which has created a need to improve the ordering processes. While the company is growing, it becomes increasingly difficult to manage inventories manually. Modern ERP systems provide huge amounts of data that should be utilized. Chez Marius needs to find a starting point for ordering process improvements and this project aims to provide that starting point by categorizing company’s B2B products with help from an ABC analysis.
This project is limited to ordering processes on the purchasing side. The focus was on the items in the B2B catalogue of Chez Marius. The time period for the sales included in the ABC analysis was one year in order to reach a sufficient amount of data.
The current situation at Chez Marius was defined by interviewing the owner and one employee. The problems and wishes for improvements were clarified in the same interviews. Based on the wishes from the interviews, sales in pieces was chosen to be the basis for the categorization. The ABC analysis was done by exporting the sales data from the previous year to an Excel file. Excel provided all the necessary attributes to create the categorization.
The B2B items were divided into categories A, B, C and D based on their sales amounts. The most commonly sold items were placed in category A. It consisted of 21% of items and they generated almost 70% of sales. Category B items contributed 20% of sales with 30% of items. Category C had 45% of items but only accounted for 10% of sales. Category D was created for new items without any sales. These percentages are in line with theories; a small number of items account for most of the sales.
The main improvement suggestion for Chez Marius was to control inventories based on their categories. Items in category A should receive most of the attention. Sales data and the ERP system should be taken more advantage of while all the processes should be standardized. An Excel tool for categorization was created for future use at the company since categorization needs to be done on a yearly basis. The tool was also tested successfully.
Through data analysis and categorization improvement suggestions for Chez Marius were achieved. Putting those improvements to use is the next step in developing the ordering processes with more structure and better allocated resources. The wishes of the company owner and employee were reached and the main problems were tackled. Starting with the improvements is the most important thing.
This project is limited to ordering processes on the purchasing side. The focus was on the items in the B2B catalogue of Chez Marius. The time period for the sales included in the ABC analysis was one year in order to reach a sufficient amount of data.
The current situation at Chez Marius was defined by interviewing the owner and one employee. The problems and wishes for improvements were clarified in the same interviews. Based on the wishes from the interviews, sales in pieces was chosen to be the basis for the categorization. The ABC analysis was done by exporting the sales data from the previous year to an Excel file. Excel provided all the necessary attributes to create the categorization.
The B2B items were divided into categories A, B, C and D based on their sales amounts. The most commonly sold items were placed in category A. It consisted of 21% of items and they generated almost 70% of sales. Category B items contributed 20% of sales with 30% of items. Category C had 45% of items but only accounted for 10% of sales. Category D was created for new items without any sales. These percentages are in line with theories; a small number of items account for most of the sales.
The main improvement suggestion for Chez Marius was to control inventories based on their categories. Items in category A should receive most of the attention. Sales data and the ERP system should be taken more advantage of while all the processes should be standardized. An Excel tool for categorization was created for future use at the company since categorization needs to be done on a yearly basis. The tool was also tested successfully.
Through data analysis and categorization improvement suggestions for Chez Marius were achieved. Putting those improvements to use is the next step in developing the ordering processes with more structure and better allocated resources. The wishes of the company owner and employee were reached and the main problems were tackled. Starting with the improvements is the most important thing.