E-Kanban for Manufacturing companies

Kanban process reduces inventory and Optimizes manufacturing process. Unlike a push based system created by MRP Planning, Just in time Kanban is a pull based system that is driven by Demand. Material is requested only when it is needed. Supplier Kanban is used for external suppliers. Typically suppliers are located with in a short distance and will be able to deliver on demand. When the bin becomes empty, suppliers are alerted to fulfill the bin. Manual kanban process has many shortcomings. Kanban cards might get lost or damaged. Also informing external suppliers that a bin is empty is a manual task. Electronic kanban process improves this by eliminating any manual intervention. Suppliers are notified immediately when a bin becomes empty and are able to update when they ship the full bin. A cloud based collaboration system acts as a common gateway between suppliers and buyers to see the current status of all the kanban cards. Reconciliation of month end invoicing is done by consolidating all the fulfill transactions that were performed during the period.