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Using a Kanban System
A Kanban system signals a trigger to order inventory once an order comes through an the inventory is withdrawn. The Kanban system is very closely related to JIT (just in time) and Lean manufacturing production. This system works by figuring what needs to be produced, how many need to be produced, when production will start and stop, and where the order needs to be delivered too.
Web based inventory management software offers traceability or genealogy capability. See Inventory and warehouse management for more applications.
Kanban systems can be very profitable for your business. Many times value is lost in inventory due to the costs of storing, theft, damages and more. Your business can end in up to 50% of your inventory value/cost lost due to these reasons. Implementing a Kanban system will reduce your inventory significantly while fulfilling the same amount of orders and providing shorter lead times. All this will be done while administering the same service practices for all of your customers. Since a Kanban system reduces much of the inventory, the business becomes much more profitable. The reduction in inventory will also reflect other cost such as labor, space and much more. Once a Kanban system is properly running it becomes a very powerful tool that helps improve your manufacturing business. It gives a durable competitive advantage to companies using the Kanban system.
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