Kanban, the “just-in-time” inventory control system releases materials only when needed. When items are pulled for use on the machined parts production floor, a card system initiates an order for new replacement materials to fill that void, retaining exact consistency in the supply chain and eliminating inventory shortages or overages.
Using long term agreements (LTAs) with suppliers of machined parts and components is the most effective way to harness kanban inventory efficiency. This white paper discusses:
- Problems incurred when not using an LTA—spot-buy issues; lead time expectations, lot traceability, among them
- Kanban/LTA benefits to the customer and supplier—better scheduling, outside vendors for critical processing, lean repeat set-ups, among them
- Customer pain points—managing the inventory, flexibility with fluctuating demand, on-time delivery, among them
- Collaboration for a successful LTA—what customers AND suppliers need to bring to the relationship
Whether CNC milling or turning, or Swiss CNC turning, wire EDM, or plastic machining—find out if an LTA is a good solution for your machined parts needs.
Read about the solutions available to you in our white paper: “Kanban Inventory Control System Benefits for Contract Manufacturing LTAs: What Customers and Suppliers Must Bring to the Relationship.”