In this post, I decided to write about a case I read, about a large manufacturer of safety products which wanted to reduce the costs and free up some space in the plant with better logistics. The company creates products for military vehicles, aircrafts etc. They approached Kanban Logistics, with a need to free up some floor space in its manufacturing plant. After several discussions about the options and capabilities, the company decided to offer a comprehensive inbound logistics solution, including inventory management, packaging and transportation.
The strategy Kanban offered, included the storage of all parts used in the final product. Each day, Kanban provided the exact number of parts required for that day’s production run. Parts were organised, to minimize time and effort for assembly workers, greatly increasing productivity. Furthermore, Kanban created some kits for end customers on behalf of the company and shipped them directly, avoiding the time and cost of doing it at the factory.
As for the quality assurance, it was done by members of the company’s quality team, who maintained an office within Kanban’s facilities. When units were completed, workers simply insert them into the ready boxes and seal them up, freeing up significant space and labor. Other finished units, were sent back to Kanban for storage and order fulfilment.
As we see from all the above, Kanban helped the company to handle the product and arrange outbound transportation using pre-approved carriers. They reduced significantly the price of storage and labor costs by all the services, and increased the throughput and productivity.