Kanban Inventory Management
American Plastic Products (APP) uses the Kanban Inventory Management System to ensure production aligns with the need of our customers and provide transparency through each fulfillment stage. This industry-standard visual workflow system addresses two common supply chain inefficiencies: excess or wasted product and delivery delays.
When customers place their orders, we track them through Kanban to eliminate any guesswork. Your business can avoid overstock, eliminate wasted space and shorten lead times with APP. Discover how Kanban helps us better serve you.
What Is Kanban?
Every stage of the production process, from plastic injection molding to final shipment, is mapped out in the Kanban system. This setup is based on Toyota’s process to produce exactly what’s needed, when it’s needed. At APP, we’ve adapted this proven approach for:
- Real-Time Signals: Color-coded cards (or digital alerts) appear on the interface when inventory starts to run low. The customer may also receive a notification to place a new order.
- Step-by-Step Tracking: Each production stage has its own card that indicates how many parts are needed and will activate as inventory gets low.
- Custom Boards: The Kanban interface can be customized to reflect the customer’s inventory and lead times.
- Lean Footprint: Kanban integrates with the warehouse, so we only use the physical space needed for your parts, keeping costs down.
Benefits of Kanban
- Minimizes excess inventory at all production stages.
- Limits bottlenecks through improved communication between customer and supplier.
- Provides a cost-effective, efficient and transparent product sourcing solution.
- Ensures you always have appropriate stock on hand.
- Helps APP coordinate production with delivery to reduce fulfillment delays.
- Enables customer to have just in time (JIT) inventory.
- Can be aligned with a customer’s business plan and production schedule.
- Eliminates guesswork and identifies areas of improvement for your production process.
- Allows for end-to-end production visibility.
How APP Uses Kanban
We currently leverage the Kanban system through:
- Per-Part Tracking: Every part gets its own Kanban card that moves through stages like Mold, Assembly, Print, Packaging and Ready to Ship.
- Timed Workflows: We set limits on how many cards can sit in each stage based on client turnaround times and other delivery considerations.
- Internal Visibility: Kanban’s real-time data informs us of bottlenecks, helps us balance workloads and stop any issues to keep projects on schedule.
APP shares regular dashboard snapshots or progress reports to update customers on their order status.
Looking for a trusted inventory management partner?
By turning inventory management into a simple visual process, Kanban supports your supply chain. Contact APP today to learn more about its capabilities.