Kanban – this Japanese word meaning “card” or “ticket” has been adapted by Business as a signaling system to trigger action. At HCSS, we implement inventory organization through a made-to-order 2-bin Kanban solution. How Kanban works:
- Based on historical usage data, HCSS establishes initial PAR inventory levels to ensure stock for a given time period. Your PAR quantities are then placed into our high density storage units which are divided into two equally sized bins – Main and Backup.
- As care-givers need supplies, they pull from the Main bin. Inventory techs review physical storage areas for empty Main bins and record them via handheld device. It’s a quick and easy way to spot what inventory is needed. As stock is replenished, Backup is moved first to Main, and then new supplies are placed in Backup.
A Kanban system is used as a demand signal that immediately propagates through the supply chain. This can be used to ensure that intermediate stocks held in the supply chain are better managed, usually smaller..