Integrated logistics – how does the KANBAN system improve sales and cus-tomer service?

Managing sales and customer service in the company requires the highest quality of action at every stage. An efficient production process is a symbol of professionalism and maintaining trust. That is why we use solutions that best meet the needs of effective cooperation and increase the efficiency of logistics. In the daily management of contractors’ inventories, we use software developed on the basis of the KANBAN methodology. It is a Japanese production planning system that lowers costs and delivery times and eliminates ineffective processes.

KANBAN is a methodology used to optimize production processes. It was established in the 1950s in Japan, and then was successfully implemented by the largest industrial concerns and companies from the IT sector. The methodology is based on the meaning of two Japanese words – “kan” and “ban”, which mean “visible” and “sheet of paper”. Together they form an information sign. KANBAN is about visualizing the production process, and its simplest layout is three columns: “to do”, “in progress” and “done”. Individual tasks are placed in the appropriate column depending on the current status.

How does the KANBAN system work at SIRIT Poland?

A system based on the KANBAN methodology has been developed to streamline the company’s operations and effectively manage its own and customers’ inventory. It has been modified and adapted to the activities of SIRIT.

The main goal of the software that the company works with on a daily basis is to save time and constantly provide customers with a fixed amount of stock. By integrating logistics services and operating in the just-in-time delivery system, product management from the entire assortment takes place without the need for team or purchasing department interference.

As a result, the customer ordering specific materials receives the order directly to his warehouse. Such automated activities minimize the loss of time and resources necessary for management, as well as reduce costs and significantly improve the company’s operations. There is no place for outstanding inventory, because orders are fulfilled according to the actual customer needs.

The system, which was created in accordance with the KANBAN idea, works well in cooperation between SIRIT and customers warehouses. “The frequency and number of orders are determined at the service design stage. The client receives free access to the program and a scanner. The ordered goods are stored in two containers – one is in the contractor’s warehouse and the other at our company’s headquarters“- says Grzegorz Sobczyk, Plant Manager of SIRIT Poland. When the first stock runs out and, according to the information from the scanner, the number of products decreases, a full box is sent to the customer and the empty one is taken away at the same time. In this way, the continuity of the order is ensured, delays are avoided and the appropriate amount of goods is secured for a given contractor. All this takes place without the involvement of additional departments, only between warehouses.

The KANBAN system offers a number of facilities for customers, the most important of which are:

• minimizing stocks,
• elimination of stock shortages,
• less space for a warehouse,
• greater control over resources – order in the warehouse,
• no need to manage logistics by the team,
• real-time inventory and statistics tracking.

By introducing the KANBAN system, the operation of the production and logistics process is not only improved, but also the work in the purchasing department is significantly simplified. The main changes after the implementation of the system include:

• minimizing the number of demand analyzes,
• minimizing the number of inquiries,
• no orders,
• no reminders,
• fewer suppliers to manage,
• logistic assistance,
• faster orders,
• personalized packaging,
• monitoring of the entire delivery process,
• reduction of delivery costs.

The use of the KANBAN system is the optimization of warehouse and logistics processes and the minimization of additional costs. Constant monitoring of inventory levels makes it easier to automate and reduce the warehouse space. Knowing these data allow improving manage processes and at the same time minimize waste, unnecessary purchases, unforeseen costs, or avoid possible downtime of the production line.