KanBan agreements are highly effective at reducing inventory levels, improving cash flow and reducing space requirements. Critically, they ensure that product is available at the point of use, when and where they are needed.
Demand for production is based on customer pulls instead of pushing parts through production based on projected demand.
ICN offers a KanBan system designed around specific customer needs which ensures that an agreed level of finished product is always maintained and ready to be pulled. In addition, the agreement extends throughout the supply chain to ensure that adequate provision is being made to position materials in advance of the demand. ICN takes total ownership of this Supply Chain Management function .
Typically, customers place Blanket Purchase Orders (BPOs) against which they can call off product as and when it is required. We replicate these BPOs throughout the supply chain to ensure on going continuity of supply. Using the KanBan system means that demand is pulled rather than pushed and replenishment works orders are self-triggering.