Monday, May 22, 2006

Digital kanban cuts inventory by $2 million

Digital kanban technology has reduced a Tier One automotive supplier's inventory by approximately $2,000,000 - the company says it has had zero part shortages since going 'live' three months ago.

A materials manager from a Tier 1 automotive supplier noted the impact of digital kanban technology from Durham, UK, NC based Datacraft Solutions: 'We scan over 5000 cards a day, have just added 1500 parts from out tool crib, and have had zero part shortages since going live three months ago. Our inventory has reduced by approximately $2,000,000.' The Datacraft Solutions' digital kanban product, Signum, received 'raves' (great enthusiasm) from Jim Malch, director of operations, Pacific Scientific, EKD: 'Pacific Scientific Electro-Kinetics is excited over the short-term results achieved with Signum in just four months. PS/EKD has forecasted a minimum of 20% increase in inventory turns by year-end, and we've seen a reduction in the transactional processes that were necessary in the FAX Release system Signum replaced.' Ken McGuire from MEAC noted, 'Why would any true lean manufacturer invest big money in software for managing Kanbans when what they really need is an effective Kanban communications service?

The evidence is mounting against the 'elusive' systems with ERP integration many IT people are promising and hoping for.

When they are finally achieved, if ever, they are found to be largely unnecessary and wasteful administrative 'boondoggles'.

Forrester Research found that only 41% of business executives at large manufacturing and distribution companies have realised any perceptible ROI from implementing Supply Chain Systems.' Signum is the Digital Kanban tool from Datacraft Solutions.

According to founder Matthew Marotta, 'Datacraft Solutions' Internet-based on-demand delivery platform offers key benefits from the very beginning of an implementation - namely, the elimination of lengthy, complicated and expensive infrastructure upgrades before a company can even begin to see positive ROI.

There is simply no faster or easier way to begin exploiting the power of Digital Kanban in a lean manufacturing operation.'