What is kanban stock
Kanban stock is a way of streamlining inventory management using the principles of the kanban method. The idea is to have just enough stock available at the right time, without surpluses or shortages. This is achieved through the use of visual cues, such as kanban cards or signs, that indicate when it is time to replenish stock.
Instead of a traditional approach, where companies often keep large inventories, kanban inventory management focuses on a 'just-in-time' system. This means items are replenished only when they are needed, leading to lower storage costs and increased flexibility.
How the kanban method works
The kanban method was developed in Japan and first adopted by Toyota in the 1940s, with the aim of optimising production and minimising waste. Today, the method is used worldwide in all kinds of industries, from manufacturing to logistics and even in software development.
The basic principles of Kanban
- Visualise the process: Use kanban boards to track the progress of tasks and inventory levels. Each process item is displayed on the board, often with columns such as 'to order', 'in progress' and 'finished'.
- Limit work in progress (WIP): set limits on how much stock or tasks can be processed at the same time. This prevents overloading and keeps the process running smoothly.
- Focus on flow: Ensure that stock and tasks flow continuously and consistently through the process. This prevents bottlenecks and waiting times.
- Improve continuously: Analyse the process regularly and adjust it where necessary to increase efficiency.
Application to Inventory management
In inventory management, this means monitoring and replenishing stock levels based on demand. When a certain level is reached - often referred to as the reorder threshold - a signal is given to order new stock. This can be done via kanban cards, electronic systems or visual aids such as kanban counters.
The role of kanban racks
Kanban racks are an essential part of a well-functioning kanban inventory management system. These racks are specially designed to provide visual and practical overview in a warehouse or storage area. They make it easy to see which items need to be replenished and where stock is located.
Benefits of Kanban racks
- Clarity: The visual layout makes it clear at a glance what stock is available and what needs to be replenished.
- Space saving: Kanban racks, also known as flow racks, help organise storage space efficiently, reducing unused space and making for a space-saving warehouse.
- Easy management: They make the process of replenishing and managing stock easier, as the racking is often fitted with labels, colour coding or cards.
- Flexibility: Our kanban racks are modular and adaptable, so they can be tailored to the specific needs of your business
The benefits of kanban inventory management
Implementing kanban inventory management offers numerous benefits for businesses:
1. Lower Costs: With kanban inventory management, you can significantly reduce costs. By keeping less stock, you save on storage costs, insurance and risks such as product obsolescence.
2. Faster reaction time: The visual signals from the kanban system allow you to react faster to changes in demand. This makes your company more flexible and better able to meet customer needs.
3. Less waste: Because you only order what you need, you minimise waste. This is not only good for your budget, but also for the environment.
4. Improved Efficiency: With clear processes and visual aids such as kanban racks, inventory management becomes easier and more efficient. This leads to fewer errors and higher productivity.
Kanban stock in practice
Due to an increasing lack of picking positions for fast-moving products, Smartphone cases decided to optimise their warehouse layout. They reorganised part of the warehouse and fitted pallet racks with a pick magazine at the bottom. This created additional floor space and made more efficient use of the available space.
Multitube offered a tailor-made solution with LIFO racking that maximises the space underneath the pallet racking. A total of 640 picking positions were created, divided into flow racks with four levels. These racks were designed with ergonomics in mind, providing easy access and easy refilling from the front. This efficient layout ensures a streamlined picking process and increases capacity for fast-moving products.
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Transform your business with kanban inventory management
Switching to kanban inventory management can have a huge positive impact on the efficiency and profitability of your business. By using the kanban method and kanban counts, you ensure a streamlined process where waste is minimised and flexibility is maximised.
Are you ready to experience the benefits of kanban inventory management? Analyse your current processes, implement kanban tools and see how you transform inventory management into a powerful competitive advantage. Or contact us and we will be happy to help you!