What is Supplier Kanban and why is it important to procurement managers?
The roller coaster ride of matching supply with ever-changing demands
If your business is at the mercy of varying customer demands and to keep pace, you find yourself juggling with your parts supplier to keep the supply chain and inventory in check, Supplier Kanban is the perfect solution. After all, excessive inventory ties up scarce resources, and shortages mean dissatisfied customers. Many refer to the complicated task of scheduling parts deliveries as chaos. Supplier Kanban is a tried and tested workflow method that eliminates the chaos and keeps your customers satisfied with on-time deliveries.
A simple definition of Supplier Kanban
Manufacturers that employ Supplier Kanban have one aim—to ensure a demand-driven supply of parts to their customers. It’s a highly effective method used to increase delivery reliability and to reduce replenishment lead time.
The history of Kanban—short and sweet
Kanban was first developed in Japan after WWII as a scheduling system for Lean manufacturing and just-in-time manufacturing. The focus is on optimizing workflow visually—the Japanese word “Kanban” means “visual board” or a “sign”—allowing manufacturers to optimize work delivery across multiple teams and handle even the most complex projects in a single environment.
How does Supplier Kanban work?
When you choose a parts supplier that employs the Supplier Kanban method, you are greatly improving the results of your delivery scheduling results without compromising on price. As a customer, once your order is placed, you have the flexibility of pulling varied amounts of products at any time. When this happens, your supplier’s system is triggered to replenish stock immediately, which cuts down on the regular lead times. Alternatively, you can delay a delivery, which automatically pushes out manufacturing schedules.
Supplier Kanban means stable pricing
Even though the timeframe and delivery schedules of your order vary, pricing remains consistent. This is a huge benefit of working with a Supplier Kanban, it’s a collaborative process that gives you maximum flexibility and reliability. When you choose a Supplier Kanban, you know your supplier is committed to matching your changing needs.
Wesgar is the fastest-growing one-stop-shop precision sheet metal fabricator and the largest producer of High-Mix, Low-Volume (HMLV) products in Western Canada and the Pacific Northwest. From its world-class 100,000-square-foot plant, located in Port Coquitlam, more than 250 fabrication specialists, engineers, metal technologists, and quality control professionals operate round-the-clock as a cohesive team to expertly manage the reliable delivery of thousands of quality components and assemblies—crafted in light gauge steel, aluminum, stainless steel, and copper. Wesgar customers value its innovative services tailored to mitigate supply chain disruptions based on the Supplier Kanban model discussed in this blog.