A Guide to Electronic Kanban (E-Kanban)


Problems With Traditional Inventory System (MRP)

In a traditional inventory system, materials are restocked when inventory runs low. While this may work in an optimal situation, any minor errors can lead to massive delays and bottlenecks down the line. In addition, heavy reliance is placed on manual checking and reordering of inventory levels, which means that by switching to an electronic system, valuable employee time could be saved


electronic kanban

What is Kanban?

Kanban is a Just in Time (JIT) concept where orders for more inventory are sent only wen zcurrent inventory is empty or low. In practice, the customer has two bins of hthe required product. When one bin is empty or running low, its sent to the supplier for restocking while the other bin is used.

What are the Benefits of Kanban?

Unlike a traditional forecast based MRP system which is prone to both shortages and excesses, the Kanban system is relatively immune to both of these issues. The cycling between the two bins protects against shortages while the ordering of new inventory only when necessary prevents overflows.

E-Kanban vs Manual Kanban

Even with all of Kanban’s benefits over MRP, a manual Kanban system can be slow and inefficient. Mailing times, business hours, and human error can severely limit or impede the system, causing trouble within the supply chain. That’s why an Electronic Kanban (E-Kanban) system is superior to a manual one. In an E-Kanban system, barcodes are scanned using a scanner and the status is sent to suppliers electronically. There, orders can be fulfilled instantly and without human interaction and are sent back to the customer. This solves the aforementioned problems and allows the supply chain to flow smoothly

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