Digital Kanban solutions within the demand-driven supply chain impact profit margins in several ways: by decreasing expense side tangible cost associated with legacy forecast management solutions, increase profit margins through efficiency gains. Increased customer satisfaction may result in additional sales to new as well as existing customers. Automated Kanban can dramatically reduce inventory, increase turns, and eliminate stock outs while enhancing supplier relations and customer satisfaction.
According to Datacraft Solutions’ CEO Stephen Parker, the negatives with legacy forecasting include:
• The general problem with forecast systems is that they are always wrong. The further out into the future the forecast the more wrong they are likely to be.
• Products are manufactured based on forecast versus actual demand. This results in overproduction and waste.
• Lack of visibility outside the four walls into the supply chain and lack of suppliers’ visibility into the production cycles.
Manual Kanban presents numerous challenges:
• Unreliable due to too many human touch points.
• Unacknowledged responses due to the manual process.
• Cards are controlled manually and susceptible to loss.
• Lack of visibility.
• Lack of timely automated reporting capability.
These issues are resolved by automated or digital kanban.
Software as a Service is a rapid, efficient and cost effective approach to implementing Automated Kanban.
Datacraft Solutions (www.datacraftsolutions.com)
Datacraft Solutions
www.datacraftsolutions.com
Jerry Bryant
Marketing Manager
jbryant@datacraftsolutions.net
800-819-5326
