Parting out of raw materials is never good for business. It is not just the rush order fees and expedited freight charges that quickly add up. The far larger cost is the reduced efficiency caused shuffling the production plan last minute to run product you DO have raw materials in an effort to keep the equipment and staff from sitting idle. Only to change plans as soon as the materials arrive in a last ditch effort to minimize broken customer promises.
The opposite extreme; over buying and locking up all of your capital in inventory that requires extra money to store and count, is nearly as bad as parting out for your company's health.
The typical post part out blame game usually goes like this.
- VP of Sales --> VP of Production "Why has the product not shipped?"
- VP of Manufacturing --> VP of Supply chain "How am I supposed to meet the sales forecast without raw materials?"
- VP of Supply chain typically points out the delayed scrap rate and material reporting from the Manufacturing team or a low balled sales forecast out of sales.
Have you seen this at your company?
Buyers are human and CAN make mistakes. The blame is seldom on their shoulders alone. The problem is that the traditional replenishment process is broken. That process is manual, slow and error prone. This is never more common than with early phase companies who are rapidly growing and realize that excel is a poor inventory and production planning 1system.
Traditional Replenishment Processes
Less efficient, (that is the nice way of saying manual) which means more work for you.
Traditional replenishment process's mean you have to keep track of your own inventory by hand and halt production in order to get to the point where you can continue producing. These processes are more likely to experience human error and make mistakes like over or under buying.
Replenishment with eKanban means real-time monitoring and alerts whenever your inventory gets low or when it's time to restock your production floor. Parting out and other costly interruptions to your production are a thing of the past.
Any recorded transaction that would bring you below your location specific replenishment level will trigger an automatic alert.
This is particularity valuable for situations where raw materials exist in several locations throughout the facility and you need more granular controls than the plant wide MRP (material requirements planning) and safety stock levels. DataNinja looks across all locations in all your facility(s).
Streamline Your Replenishment Process.
DataNinja eKanban will auto-replenish materials to keep your production lines running.
eKanban Supports all Tracking Types
Track items how you want.
Whether you track inventory by Part, Batch, or Sublot, eKanban will work to keep production lines moving.
Specify a part, the location, the quantity you need to have on hand, a reorder point and a reorder quantity, and eKanban will do the rest.
For production lines that rely on accuracy and traceability, you can turn on, or off, "mixed" batches. Allowing an extra layer of customization so that eKanban forms to fill your specific needs.
Eliminate the need for multiple scans to record inventory transactions that can slow down production. Scan your line at the beginning of production, and eKanban's Intelligent Auto-Consumption tool will generate the rest of the transactions for you by pulling from the selected inventory to keep your production on track and running smoothly.
With eKanban Replenishment and Auto-Consumption working together:
- The buyers have the inventory position data they need to do their job.
- The Material handlers know how to feed the line with product so there are no delays.
- The Production team can automate lot number traceability with a single scan.
Fully Automated Inventory Control
Let eKanban replenish and consume for you.
Updated over 1 year ago