Pulse Output

Manufacturing journalist, Thomas R. Cutler’s feature article titled, “Distributors should look to digital Kanban†which originally appeared in the July 2007 issue of Industrial Distribution was picked up by SCM Pulse, Supply Chain Management News, Resources, and Commentary. The article may be read in it’s entirety at http://scmpulse.wordpress.com/2007/07/29/distributors-take-on-digital-kanban/.

According to Cutler, “Distributors must continually innovate to maximize productivity and reduce total costs. Initiatives of process improvement and waste reduction can result in cost-saving efficiency. Productivity is output, efficiency and production. Waste is identified in many ways, yet ultimately it is any activity that requires allocated resources but adds no value from the customer’s perspective. Some activities, while not directly adding value to a product or process (such as time spent on equipment maintenance or an accounting function) are necessary and must be perpetuated. But non-value-added activities must be constantly reevaluated and, if necessary, identified as waste and eliminated.â€

For example, many distributors still maintain inventories of a million plus items. Even with extensive networks of distribution centers to ensure prompt and reliable deliveries to their customers, their success is still not guaranteed. Despite long-standing relationships with thousands of manufacturers, many distributors lack an integrated approach. This costs customers time and money.

Purchasing organizations wrongly assume that “just-in-case†inventories are less costly than the cost of downtime or lost production. Preparing for an emergency or downtime situation usually creates inventories of items never used. Your lean procurement activities must be directly related to production, otherwise they become waste themselves. Many organizations implement lean strategic sourcing initiatives, yet still find that nearly half their purchases are spot buys or unplanned.

A key component to a lean initiative is the use of Kanban, the “pull†method of keeping production lines suitably stocked with inventory that’s available when needed and in the correct quantity. Kanban is the signal needed for inventory replenishment, and as a product is consumed, an order for the utilized inventory is automatically placed. Digital kanban is the leanest methodology for a demand-driven supply chain.

Supplier consolidation can lower costs and improve productivity, but only if there is a complete understanding of the customers’ needs and goods. According to Stephen Parker, CEO of North Carolina-based Datacraft Solutions, “The reduction of waste associated with rarely used items in inventory allows distributors to focus on core competencies. No time should be wasted sourcing and procuring infrequently used items. Digital Kanban re-orders, based only on actual consumption, are electronically communicated during each phase of replenishment.â€

Lean procurement today requires digital Kanban because it is ultimately a demand-driven, lean optimization tool that allows for both flexibility and responsiveness, thereby eliminating waste, increasing productivity, and holding to the cardinal rule of continued process improvement.

Datacraft Solutions (www.datacraftsolutions.com) delivers a revolutionary digital kanban process of automation solutions to lean manufacturers through a secure Internet gateway, eliminating the need to install and maintain a complex IT infrastructure. The company has experienced significant growth in the past twelve months by eliminating complicated, expensive, time-intensive software implementations as well as extensive training regiments and the need for internal support. The Datacraft Solutions’ demand driven supply chain digital kanban lean system allows customers access and fully utilize powerful lean benefits immediately for a low, predictable monthly fee. Services are scalable so manufacturers and distributors can design an appropriate digital kanban solution.

About the Author:

Datacraft Solutions
www.datacraftsolutions.com
Jerry Bryant
Marketing Manager
jbryant@datacraftsolutions.net
800-819-5326

Article Source: ArticlesBase.com – Scm Pulse Picks Up Datacraft Solutions’ Digital Kanban Feature

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Manufacturing journalist, Thomas R. Cutlerâ € ™ s report titled, â € œDistributors should look to digital kanbans € which originally appeared in the July issue of Industrial Distribution 2007 was collected by pulse SCM, Supply Chain Management News, Resources, and Commentary. Article can be read in itâ € ™ s all in http://scmpulse.wordpress.com/2007/07/29/distributors-take-on-digital-kanban/.

According to Cutler, â € œDistributors must continuously innovate to maximize productivity and reduce overall costs. Initiatives of process improvement and reduction waste can result in cost savings from efficiency. Productivity is output, efficiency and production. Waste is identified in many ways, but in the final instance, is an activity that requires the allocation of resources but adds no value Customerâ ™ € s perspective. Some activities, though not directly adding value to a product or process (such as time spent on equipment maintenance or an accounting function) are necessary and must be perpetuated. But activities of added value should be constantly reassessed and, if necessary, identified as waste and eliminated.â €

For example, many distributors still maintain inventories of over one million articles. Even with an extensive network of distribution centers to ensure fast and reliable delivery to customers, their success is not guaranteed. Despite lasting relationships with thousands of manufacturers, many distributors lack an integrated approach. This time, customers and costs money.

Purchasing organizations wrongly assume that in case œjust € â € inventories are less costly than the cost of downtime or loss of production. Preparing for an emergency or downtime usually creates inventories of items never used. Your lean procurement activities must be directly related to production, otherwise they become waste themselves. Many organizations implement lean strategic initiatives of supply, and yet we find that nearly half their purchases are spot buys or unplanned.

A key component of a lean initiative is the use of Kanban, the â € € œpullâ method of keeping production lines suitably equipped with inventory thata € ™ s available when needed and the correct amount. Kanban is the signal needed for inventory replenishment, and as a product that is consumed, an order for the utilized inventory is automatically placed. Digital kanban is the leanest methodology for demand-driven supply chain.

The consolidation of suppliers can reduce costs and improve productivity, but only if a complete understanding of the needs of customers € ™ and goods. According to Stephen Parker, CEO of Carolina Northern-based Datacraft Solutions, â € œThe reducing waste associated with rarely used items in inventory allows distributors to focus on their core competencies. No time to lose the supply and purchase of infrequently used items. Digital Kanban Re-orders, based only on consumption real, are electronically communicated during each phase of replenishment.â €

Lean procurement today requires digital Kanban because it is at last instance a demand-driven, lean optimization tool that allows both flexibility and responsiveness, thereby eliminating waste, increasing productivity, and holding the cardinal rule of the process of continuous improvement.

Datacraft Solutions (www.datacraftsolutions.com) provides a revolutionary digital kanban process of automation solutions to lean manufacturers through a secure Internet gateway, eliminating the need to install and maintain a complex IT infrastructure. The company has experienced significant growth in the last twelve months by eliminating complicated, expensive, time-intensive software implementations as well as extensive training regiments and the need for internal support. Datacraft Solutions' driven demand supply chain digital kanban lean system allows customers access and fully utilize powerful lean benefits immediately for a low, predictable fee monthly. Services are scalable for manufacturers and distributors can design an appropriate solution for digital kanban.

About the Author:

Datacraft Solutions
www.datacraftsolutions.com
Jerry Bryant
Marketing Manager
jbryant@datacraftsolutions.net
800-819-5326

Article Source: ArticlesBase.com – Scm Pulse Picks Up Datacraft Solutions’ Digital Kanban Feature