THE KANBAN SYSTEM

An effective inventory management system that lowers your long-term costs.
A few years ago, some of our customers were having difficulties maintaining their inventories. Every order would be rush delivery. Our customers would incur heavy shipping costs because of this. Ideal Parts needed a way to meet our customers' demands for fast, guaranteed service -- and we wanted to eliminate their extra shipping costs.

This system, developed on the foundation of the Japanese principle of KanBan, or effective management of resources, analyzes the actual usage of our client's products to determine the specific type of shipment needed. We do this by determining the economic order quantity (EOQ) which is the ideal production quantity amount which balances holding costs and set-up costs. Your KanBan size is based on your estimated annual usage of the part and the packaging requirements.

With this information we create a system of inventory management that includes stocking an extra shipment of parts that can be shipped quickly and efficiently within a short time notice. This guarantees that our customers can get the parts they need on demand -- with no hassles or delivery problems.

And our customers know we will always have a certain quantity of their parts available. This saves shipping time and costs, keeps the customer's production line moving, and ensures that the customer will always get their parts when they need them.