Pull Chain
Pull Chain
IPhone Supply Chain Highlights Rising Costs in China
Soaring labor costs, a strengthening Chinese currency, and rising housing prices are threatening to sharply increase the cost of making electronics.
Manufacturing Journalist Tr Cutler Profiles Demand Driven Supply Chain in World Trade Magazine
In the December issue of World Trade magazine, leading manufacturing journalist, Thomas R. Cutler, described the current nature of “Dynamic Warehousing” including the role of the Demand Driven Supply Chain.
Ultimately, finding methodologies and technology tools to implement powerful and accessible frameworks to reduce inventory levels, increase productivity, and process flow are most critical. A demand driven supply chain is best characterized by a cost-effective digital supply replenishment network.
A key component to a lean initiative is the use of kanban, the “pull” method of keeping production lines suitably stocked with inventory when needed and in the
correct quantity. Kanban is the signal needed for inventory replenishment, and as a product is consumed, an order for the utilized inventory is automatically placed.
Given the challenges of lost or duplicated kanban paper cards, digital kanban is the leanest methodology for a demand-driven supply chain.
According to Stephen Parker, CEO of Datacraft Solutions (www.datacraftsolutions.com), “Inventory reduction and number of turns are key benchmarks in determining whether a solution is truly an on-demand SaaS (software as a solution) electronic pull-based supply chain solution. Only with real-time material flow status, intelligent demand load leveling, and digital kanban, can an instant ROI be realized.”
Indeed, those actively engaged in lean initiatives seek to reduce inventory levels, automate process controls, and enable supply chain integration both internally and through suppliers globally. Many Tier One manufacturers report that inventory savings have exceeded $1 million in saving in just three months in a single cell with a single supplier, with one international transportation component leader achieving an $8 million reduction in less than six months with 1000 percent increase in turns.
A global environmental systems leader accomplished a 78 percent reduction in transaction costs and a 500 percent improvement in customer response time as a result of a Demand Drive Supply Chain automation solutions delivered securely over the Internet. A distinct advantage that drives the rapid, even instant, ROI (return on investment) is the SaaS (software as a service) process requires a far smaller up front investment financially than a similar software system that requires maintenance and installation costs.
About Datacraft Solutions:
Datacraft Solutions (www.datacraftsolutions.com) delivers a revolutionary digital kanban process of automation solutions to lean manufacturers through a secure Internet gateway, eliminating the need to install and maintain a complex IT infrastructure. The company has experienced significant growth in the past twelve months by eliminating complicated, expensive, time-intensive software implementations as well as extensive training regiments and the need for internal support. The Datacraft Solutions' replenishment supply chain digital kanban lean system allows customers access and fully utilize powerful lean benefits immediately for a low, predictable monthly fee; services are scalable so manufacturers can design an appropriate solution.
About the Author
Datacraft Solutions
www.datacraftsolutions.com
Sonja Foust
sfoust@datacraftsolutions.net
800-819-5326
Pull Chain
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