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Kanban for Hospitals

The Kanban System Kanban is the Japanese term for Just in Time Replenishment. This is a visual tool to refill inventory when and only when needed. As the refill is done only when necessary, there is no excess or shortage. As a result, inventory is always kept lean. Kanban System and Health Care Industry The kanban system has been used successfully since 1940 in various manufacturing industries, and super markets. It is a common sight to see long racks where bakery items [...]

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How Blockchain Technology Can Preserve Food Safety

Recently, there has been a large scale case of E.Coli outbreaks in the US, affecting mostly lettuce and lettuce based products. Due to the disastrous effects of the bacteria, keeping it away from customers is of the utmost priority. The difficulty in doing this arises from the near impossibility of fully tracing back a food product to its source. Between the restaurant that serves it and the farm that grows it, there may be a multitude of middlemen, each [...]

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How Kanban is Re-Inventing VMI

A few decades ago, the idea of Vendor Managed Inventory was very popular. It was a new, innovative way of managing inventory where the supplier held the product until it was used. The customer benefited because they could maintain a constant inventory and were in a better position to negotiate. The supplier benefited too, since they were guaranteed business with the customer. It soon became apparent that VMI came with massive risks to both parties. From the customer’s perspective, [...]

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Why You Should Have a Vendor Portal to Manage Suppliers

In today’s rapid business world, immediate and efficient access to information is a must. Along with your customers, suppliers and purchasing agents need the same level of info just as fast. The fastest and most cost-effective way to implement this is with a supplier vendor portal. Here are some of its benefits: SUPPLIER SELF-SERVICE Portals allow the supplier to have a high degree of autonomy. Inquiries that would have taken days or even weeks through a lengthy process of calls and [...]

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Electronic Kanban (E-Kanban)

What is Kanban? Kanban is a Just in Time (JIT) concept where orders for more inventory are sent only when current inventory is empty or low. In practice, the customer has two bins of the 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 [...]

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How to Extend ERP to Supply Chain

ERP (Enterprise Resource Planning) is an In-house system that sits behind the company firewall. All the core data needed for the day to day operation of the company lives in this system. Supply chain is traditionally outside the company’s firewall. All external trading partners and suppliers are part of the supply chain. So, there is a clear disconnect here. All the vital data needed for the effective supply chain operation is not available for the external supply chain. Integrated Supply Chain and [...]

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Why Forecasting is a Valuable Tool in a Supply Chain

Forecasts are future view Senior business man searching new opportunities for his company Forecasts are very important information in Supply chain. They tell everyone what to expect in the short and long future. But the key to the usefulness of information is only when it is shared. Shared with the right person at the right time.         How does supply chain uses Forecast As the name says, Supply Chain is a chain. There are links in the front and links in the back. Customers [...]

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Electronic Kanban Process Explained

Kanban Kanban is the Just in Time (JIT) concept where two bin signals are used to control inventory consumption and avoid excess inventory buildup. Inventory is replenished only after consumption. This is a controlled process of inventory management using Pull rather than push. Kanban two bin system Normally, Kanban process is very successful for suppliers located at a nearby distance.  Setting up Kanban Process Card Setup Process Items and suppliers selected for Kanban will have fixed quantity redemption. This is called card size. For example, [...]

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Supply Chain Collaboration is Crucial for Businesses to Achieve Optimum Operational Efficiency

The Supply Chain has always been an integral part of any business. Supply Chain function is highly responsible for in – bound and out – bound logistics and moreover, the internal processes of the organisation. A supply chain collaboration enables the organisation to convey the accurate information to the distribution channels and also to enable the client or the final customer to track the processing and get the status quo of his requirement. Therefore most of the organisations have [...]

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Why E-Kanban is Replacing ROP (Reorder Level Planning)

ROP Planning Man stock recording Many of the ERP Systems use MRP based planning. One of the most popular method of planning is Re-Order Level planning also called ROP Planning. In this method, for each item, a minimum stock level will be set in the system. When the actual on hand inventory reaches this minimum level, or goes below this level, this item will be marked as ready to order. Next time when MRP runs, a purchase order will be generated. This [...]

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