Get to know the vital terms of Logistics and Supply Chain Management.
Kanban in logistics is a visual inventory management system designed to optimize workflow, minimize waste, and enhance efficiency in inventory and task management. The Kanban system was originally developed in manufacturing by Toyota but has since been adopted widely in logistics and supply chain management to streamline processes.
In a Kanban system, visual signals are represented by cards or boards to signal when a certain action is required. An example would be a card on a Kanban indicating the time to restock inventory or the time for the next step in the process. The trigger for some action regarding an item or task, such as the low level of stock of inventory, will stimulate re-stocking or new activity. This will maintain the inventory in an ideal range and avoid both overstocking as well as understocking.
Kanban eliminates all types of stockouts as well as excess inventories as it keeps it in an ideal range, thereby saving all types of costs.
It enhances efficiency by keeping all processes in order by eliminating all obstacles, real-time tracking of all kinds of statuses, and thus increases workflow.
Kanban systems are very flexible, hence allowing changes in response to the demand and other parameters. This is important because the logistics environment is so dynamic.
All members know what is in need of attention, making the coordination among the teams effective and tasks prioritized.
It is a very powerful system used in logistics for the management of tasks and inventory and has a simple yet effective visual approach providing real-time information about the status of your inventory and tasks, thus resulting in smoother operation and better resource management.