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Kanban system: definition & important aspects for buyers
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Kanban system in a nutshell:
The Kanban system is a pull-based method of production and material control in which materials are only reordered when the actual demand arises through consumption. For purchasing, this enables needs-based procurement with minimized stock levels while ensuring material availability.
Example: An automotive supplier uses a two-stage Kanban system for C-parts, in which the removal of a container with 100 screws automatically triggers a reorder card, which is collected by the supplier three times a week and leads to replenishment within 24 hours.
Contents
Introduction to the Kanban system
What is the Kanban system?
The Kanban system is a method for controlling processes in production and material flow that is based on the "pull principle". Originally developed in the Japanese automotive industry, it is used to supply materials in line with demand. The consumption of an item signals the need for replenishment, which avoids overproduction and increases efficiency. Visual aids such as Kanban cards are used to control stocks and make processes transparent.
Core elements of the Kanban system
Importance of the Kanban system in purchasing
In procurement management, the Kanban system enables efficient control of material flows and a reduction in stock levels. Through close coordination with suppliers, orders can be automated and requirements covered in real time. This leads to a reduction in throughput times, costs and increased flexibility to react quickly to changes in the market.
Implementation of the Kanban system in purchasing
By using the Kanban system in purchasing, material flows are controlled efficiently, with replenishment triggered directly by consumption. This reduces stock levels and dynamically adapts procurement to actual demand. Visual signals such as Kanban cards or digital tools enable transparent and lean process design.
Practical example: Kanban at an electronics manufacturer
Scenario: An electronics manufacturer regularly requires specific components for the production of printed circuit boards. Instead of storing large quantities, the company implements a Kanban system with the supplier.
1. Consumption signal: In production, containers are equipped with components. As soon as a container is emptied, a Kanban card is sent to the purchasing department.
2. Order triggering: Purchasing receives the Kanban card and automatically triggers a repeat order with the supplier, according to the predefined quantity.
3. Fast delivery: The supplier delivers the components directly to the production line within 12 hours.
4. Continuous flow: The fast response time keeps stock levels to a minimum and production runs without interruption.
Result: The electronics manufacturer reduces storage costs by 30%, improves liquidity and increases flexibility to respond to fluctuations in demand.
Evaluation and strategic findings
✓ Critical success factors
→ Supplier partnership: close cooperation and coordination with key suppliers for fast response times
→ Process standardization: Clearly defined processes and uniform Kanban signals throughout the procurement process
→ Employee qualification: Continuous training of the purchasing team in lean methods and Kanban principles
⚠ Challenges and limitations
→ Fluctuations in demand: Flexible system required for unpredictable peaks in demand
→ IT integration: implementation of digital Kanban boards in existing ERP systems
→ Cultural change: transition from traditional push to pull control in purchasing
Future trends and developments:
"The digitalization of the Kanban system enables even more precise control of the supply chain."
→ E-kanban systems with real-time monitoring
→ AI-supported demand forecasts
→ Integration of IoT sensors for automatic reordering
→ Mobile Kanban solutions for cross-location coordination
◆ Strategic implications
→ Cost reduction: demonstrable reduction in storage costs by 20-30%
→ Competitive advantage: faster response to market changes
→ Risk minimization: Less dependence on individual suppliers thanks to standardized processes
Conclusion on the Kanban system
The Kanban system is revolutionizing modern purchasing with its efficient pull control and transparent process design. It not only significantly reduces stock levels and costs, but also enables a more flexible response to market changes. Despite initial implementation challenges, the long-term benefits outweigh the costs: optimized supplier relationships, increased process efficiency and improved competitiveness. With advancing digitalization and AI integration, the Kanban system will remain a key tool for successful procurement management in the future.
